Monopolistic competition and international trade theory
|Title:||Monopolistic competition and international trade theory||Authors:||Neary, J. Peter||Permanent link:||http://hdl.handle.net/10197/1254||Date:||11-Dec-2000||Online since:||2009-07-20T15:49:45Z||Abstract:||Almost twenty-five years after the appearance of Dixit and Stiglitz’s paper on monopolistic competition and optimum product diversity, I try to take stock of the progres which has been made in applying their approach to international trade theory. I review the principal applications to trade theory and present a new one: by embedding DS preferences in a specific-factors framework, I sketch a model which shows how multinational corporations can emerge even between countries with similar factor endowments. Finally, I address some limitations of the approach, including its treatment of variety, returns to scale, entry and firms’ strategies.||Funding Details:||Economic and Social Research Council (ESRC)||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP00/25||Keywords:||Dixit-Stiglitz model; International trade with increasing returns and product differentiation; Monopolistic competition; Multinational corporations||Subject LCSH:||International trade
International business enterprises
|Other versions:||http://www.ucd.ie/economics/research/papers/2000/WP00.25.pdf||Language:||en||Status of Item:||Not peer reviewed||Conference Details:||Presented to the conference on The Monopolistic Competition Revolution after Twenty-Five Years, University of Groningen, 30-31 October 2000|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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