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Protection, international factor mobility and monopolistic competition

Anwar, Sajid (2000). Protection, international factor mobility and monopolistic competition. Finnish Economic Papers,13(2):116-128.

Document type: Journal Article
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Title Protection, international factor mobility and monopolistic competition
Author Anwar, Sajid
Journal Name Finnish Economic Papers
Publication Date 2000
Volume Number 13
Issue Number 2
ISSN 0784-5197   (check CDU catalogue open catalogue search in new window)
Start Page 116
End Page 128
Total Pages 13
Place of Publication Helsinki,Finland
Publisher Finnish Society for Economics Research
HERDC Category C1 - Journal Article (DEST)
Abstract This paper utilises a model of a small open economy that produces two traded goods by means of primary factors and a large number of varieties of a non-traded intermediate good. Unlike the traded goods, the production of each variety of the non-traded good is subject to internal economies of scale and monopolistic competition prevails in the intermediate good sector. The presence of internal economies in the intermediate good sector gives rise to external economies in the production of the final good sector. Within the context of the present study, interindustry and intra-industry trade takes place side by side. The model is used to examine the impact of tariffs and changes in factor endowments on allocation of resources and welfare.
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