Energy Abundance, Trade and Industry Location

Scale Economies, Intra-industry Trade and Industry Location in the "new Trade Theory"

This paper exposes some common misinterpretations of the "new trade theory". First, the view that high scale economies give rise to high levels of intra-industry trade is challenged. It is shown that the monopolistic-competition trade model predicts a negative relationship between internal scale economies and intraindustry trade. Second, in spite of a common perception that the "new" theory exp...

Economic Geography, Industry Location and Trade: The Evidence

General-equilibrium models based on increasing returns, product differentiation and monopolistic competition have attained a prominent position in trade theory and, more recently, in economic geography. This paper surveys empirical studies on issues raised by the new wave of theoretical thinking. There is a growing literature documenting spatial distributions of industries at country and region...

Relative Factor Abundance and Trade

I develop a factor content of trade prediction for the Heckscher-OhlinVanek model (HOV) that relates bilateral differences in country endowments to bilateral differences in factor contents. The results are striking. In comparisons of North-South factor contents or factor contents of countries with very different endowments (e.g., with very different capital-labor ratios), there is clear support...

Determinants of Iran’s bilateral intra-industry trade in pharmaceutical industry

Among non-oil exports and in trade arena, drug has always been strategic importance and most government especially industrialized countries pay special attention to its production and trade issues. Thus, having a comprehensive view from economic perspective to this section is essential for suggesting intervention. This was a descriptive-analytical and panel study. In this study, gravity model i...

The Role of Preferential Trade Agreement (PTA) between Iran and Malaysia their Intra industry Trade (IIT)