Industrial Organization and International Trade

74 Pages Posted: 28 May 2004

See all articles by Paul R. Krugman

Paul R. Krugman

Princeton University - Woodrow Wilson School of Public and International Affairs; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: June 1986

Abstract

This paper reviews recent work on the relationship between industrialorganization and international trade. Five strands in the theoreticalliterature are discussed. First is the role of economies of scaleas a cause of intra-industry trade, modelled using monopolistic competition.Second is the effect of tariffs and quotas on domestic marketpower. Third is the analysis of dumping as international price discrimination.Fourth is the potential strategy role of government policy as anaid to domestic firms in oligopolistic competition. Finally, the paperdiscusses recent work that may provide a new argument for protectionism.A concluding section discusses recent efforts at quantification of newtrade theory.

Suggested Citation

Krugman, Paul R., Industrial Organization and International Trade (June 1986). NBER Working Paper No. w1957. Available at SSRN: https://ssrn.com/abstract=344777

Paul R. Krugman (Contact Author)

Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States
609-258-4570 (Phone)
609-258-2809 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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