Monopolistic Competition and International Trade: Reconsidering the Evidence / David Hummels, James Levinsohn.

Format:

Book

Author/Creator:

Hummels, David.

Contributor:

National Bureau of Economic Research.

Levinsohn, James.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4389.

NBER working paper series no. w4389

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Monopolistic Competition and International Trade

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1993.

Summary:

In this paper, we test some propositions about international trade flows that are derived from a model of monopolistic competition developed by Elhanan Helpman. We investigate whether the volume of trade between OECD countries is consistent with the predictions of a modal in which all trade is intra-industry trade in differentiated products. We then repeat the test with non-OECD countries. We also investigate whether the share of intra-industry trade is consistent with a more general theoretical model in which some, but not all, trade is intra-industry trade. Our results lead us to question the apparent empirical success of these models.

Notes:

Print version record

June 1993.