Pattern of Trade and Economic Development in a Model of Monopolistic Competition

Authors: Sachs, Jeffrey1; Yang, Xiaokai2; Zhang, Dingsheng3

Source: Review of Development Economics, Volume 6, Number 1, February 2002 , pp. 1-25(25)

Publisher: Blackwell Publishing

Key:
Free Content - Free Content
New Content - New Content
Subscribed Content - Subscribed Content
Free Trial Content - Free Trial Content

Abstract:

The paper introduces differences in production and transaction conditions between countries into a model of monopolistic competition. It applies inframarginal analysis to show that, as transaction conditions are improved, the general equilibrium may jump discontinuously across different patterns of trade and economic development. A country may export a good in which it has exogenous comparative disadvantage if its endogenous comparative advantage dominates this disadvantage. Countries will choose a trade and development pattern to utilize their net exogenous and endogenous comparative advantages in production as well as in transactions.

Document Type: Original article

DOI: 10.1111/1467-9361.00136

Affiliations: 1: Center for International Development, Harvard University, USA, 2: Department of Economics, Monash University, Australia, 3: Institute for Advanced Economic Studies, Wuhan University, China

The full text electronic article is available for purchase. You will be able to download the full text electronic article after payment.

$50.39 plus tax      Refund Policy

 

OR

Back to top

Key:
Free Content - Free Content
New Content - New Content
Subscribed Content - Subscribed Content
Free Trial Content - Free Trial Content
Share this item with others: These icons link to social bookmarking sites where readers can share and discover new web pages.
Page Help Click here for Page Help
Shopping cart
Tools
Sign in






Need to register?
Sign up here
Text size: A | A | A | A