Chapter 3 Comparative Advantage and Trade Liberalization in a Chamberlinian–Ricardian Model
Globalization and Emerging Issues in Trade Theory and Policy
ISBN: 978-1-84663-962-3, eISBN: 978-1-84663-963-0
Publication date: 1 October 2008
Abstract
Purpose – The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns.
Methodology/approach – It takes the work of Kikuchi et al.'s (2008) Chamberlinian–Ricardian model as its point of departure, and extends the analysis to include both a continuum of industries, as did Dornbusch et al. (1977), and iceberg transport costs.
Findings – It will be shown that trade liberalization drastically changes the nature of trade patterns, particularly the emergence of intra-industry trade.
Originality/value – This present model extends the Chamberlinian–Ricardian model to include positive trade costs.
Keywords
Citation
Kikuchi, T. and Shimomura, K. (2008), "Chapter 3 Comparative Advantage and Trade Liberalization in a Chamberlinian–Ricardian Model", Tran-Nam, B., Van Long, N. and Tawada, M. (Ed.) Globalization and Emerging Issues in Trade Theory and Policy (Frontiers of Economics and Globalization, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 29-35. https://doi.org/10.1016/S1574-8715(08)05003-3
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited