Chapter 13 A Two-Country Model of International Trade with Increasing Returns and Oligopoly

2008 ◽  
pp. 209-229 ◽  
Author(s):  
Kenji Fujiwara ◽  
Nobuhito Suga ◽  
Makoto Tawada
Keyword(s):  
International Trade ◽  
Increasing Returns

Intra-industry and inter-industry trade through the lens of comparative and absolute advantage

2016 ◽  
pp. 112-128
Author(s):  
A. Gnidchenko
Keyword(s):  
International Trade ◽  
Product Quality ◽  
Vital Role ◽  
Increasing Returns ◽  
Traditional View ◽  
Export Diversification ◽  
Industry Trade ◽  
Long Time ◽  
Absolute Advantage

The article surveys the literature that emphasizes the importance of comparative and absolute advantages for intra- and inter-industry trade. Two conclusions follow form the survey. First, unlike the traditional view, intra-industry trade is determined rather by technology than by increasing returns. Second, absolute advantages that have been ignored in international trade models for a long time play a vital role through their linkages with product quality and export diversification. We also discuss a new strand of literature that models international trade with the assumption of non-homothetic preferences.

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