A ‘reciprocal dumping’ model of international trade
James A. Brander,Paul Krugman +1 more
TLDR
This paper developed a model in which the rivalry of oligopolistic firms serves as an independent cause of international trade and showed how such rivalry naturally gives rise to "dumping" of output in foreign markets, and showed that such dumping can be "reciprocal" -that is, there may be two-way trade in the same product.About:
This article is published in Journal of International Economics.The article was published on 1983-11-01 and is currently open access. It has received 1072 citations till now. The article focuses on the topics: Competition (economics) & Dumping.read more
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Market Size, Trade, and Productivity
TL;DR: In this article, the authors develop a monopolistically competitive model of trade with firm heterogeneity in terms of productivity differences and endogenous differences in the "toughness" of competition across markets.
Journal ArticleDOI
Market Size, Trade, and Productivity
TL;DR: In this paper, the authors develop a monopolistically competitive model of trade with firm heterogeneity and endogenous differences in the "toughness" of competition across markets, in terms of the number and average productivity of competing firms.
Book
Advanced International Trade : Theory and Evidence Ed. 2
TL;DR: The Advanced International Trade (AIT) as discussed by the authors is a classic graduate textbook in international trade that has been used widely by students and practitioners of economics for a long time to come.
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Economic Geography and Public Policy
Richard E. Baldwin,Rikard Forslid,Philippe Martin,Gianmarco I.P. Ottaviano,Frédéric Robert-Nicoud +4 more
TL;DR: Baldwin et al. as mentioned in this paper presented and analyzed the widest range of new economic geography models to date, and examined previously unaddressed welfare and policy issues including, in separate sections, trade policy (unilateral, reciprocal, and preferential), tax policy (agglomeration with taxes and public goods, tax competition and agglomeration), and regional policy (infrastructure policies and the political economy of regional subsidies).
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Multinational Firms and The New Trade Theory
TL;DR: In this paper, a model is constructed in which multinational firms arise endogenously, and it is shown that multinational firms are more important in total activity when countries are similar in incomes (size) and in relative factor endowments, and when total world income is high.
References
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Increasing returns, monopolistic competition, and international trade
TL;DR: The authors developed a simple, general equilibrium model of non-comparative advantage trade and showed that trade and gains from trade will occur, even between countries with identical tastes, technology, and factor endowments.
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Intra-industry trade under perfect monopolistic competition*
TL;DR: In this paper, the authors apply the analysis of perfect monopolistic competition to the problem of intra-industry trade and show that a high volume of intra industry trade can be expected even between economies which are identical in all respects and thus between which no trade would be predicted on the basis of comparative advantage.
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Intra-industry trade in identical commodities
TL;DR: In this article, it is shown that there are reasons to expect two-way trade even in identical products, due to strategic interaction among firms, and that such trade arises because slightly different commodities are produced and traded to satisfy consumer's tastes for variety.
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On the effects of entry
TL;DR: In this article, the authors examine the effect of entry on output and profits in the Cournot model of oligopoly and conclude that the effect on profits is not necessarily unambiguous, as they would need to be zero in the new equilibrium.