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Commercial policy and international factor mobility in the presence of monopolistic competition

Anwar, Sajid (2001). Commercial policy and international factor mobility in the presence of monopolistic competition. Journal of Economics,74(3):259-281.

Document type: Journal Article
Citation counts: Scopus Citation Count Cited 0 times in Scopus Article

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Title Commercial policy and international factor mobility in the presence of monopolistic competition
Author Anwar, Sajid
Journal Name Journal of Economics
Publication Date 2001
Volume Number 74
Issue Number 3
ISSN 0931-8658   (check CDU catalogue open catalogue search in new window)
Scopus ID 2-s2.0-0347868852
Start Page 259
End Page 281
Total Pages 23
Place of Publication Austria
Publisher Springer Publishing Company
HERDC Category C1 - Journal Article (DEST)
Abstract Abstract This paper utilizes a well-known specification of returns to specialization (a variation of the Spence-Dixit-Stiglitz model) to explore the implications of local agglomeration effects for commercial policy and restricted factor mobility. The paper initially considers a small open economy where it is shown that a tariff reduces the degree of specialization and hence the size of the external economies to the producers. An inflow of labor increases the degree of specialization while a capital inflow decreases it. The paper then considers a two-country world where both countries are large and deals with the pattern of trade and factor mobility.
Keywords international trade
monopolistic competition
industry-specific factors
variable returns
economic-development
increasing returns
producer services
trade
scale
specialization
equilibrium
inputs
DOI http://dx.doi.org/10.1007/BF01231350   (check subscription with CDU E-Gateway service for CDU Staff and Students  check subscription with CDU E-Gateway in new window)
 
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