On Chamberlinian-Ricardian Trade Patterns

Abstract:     
This study provides a simple, many-industry model of trade which emphasizes the interaction between cross-country technical heterogeneity (i.e., a Ricardian aspect) and monopolistic competition among producers of differentiated products (i.e., a Chamberlinian aspect) as determinants of trade patterns. It is shown that the emergence of intra-industry trade is crucially dependent on the shape of the technology index schedule, which is obtained as a step-function.

Number of Pages in PDF File: 8

Accepted Paper Series