Does national market size matter for industrial structure? This has been suggested by theoretical work on "home market" effects. In the present paper, I show that what previously was regarded as an assumption of conveniencetransport costs only for the differentiated goods-matters a great deal. In afocal case in which differentiated and homogeneous goods have identical transport costs, the home ...

Firstly, the paper reviews the study situation of trade gravity model at home and abroad, and points out that the trade gravity model is not widely applied in the industrial trade flow. Secondly, the paper takes the export of China’s textile industry as an example to put forward export trade gravity model, and analyzes the influence of trade protection upon export of our textiles and other infl...

When economists speak of a globalizing world, they have in mind first and foremost the dramatic moves we have made toward a global common market; that is, our evolution toward a world economy integrated across national boundaries. Our progress in this direction has been especially dramatic in the liberalization of international trade in goods. Since multilateral trade negotiations produced the ...

Two of the main puzzles in international economics are the consumption and the portfolio home biases. They are empirically related: countries that are more open to trade also have more internationally diversified portfolios. In a two-country stochastic equilibrium model, I prove that introducing trade costs in goods market alone, as suggested by Obstfeld and Rogoff [2000], is not sufficient to ...

the primary goal of any economic policy in the production front is, as far as possible to enhance the degree of sectoral interrelatedness (henceforh si) within the home economy. the focal objective of such policy is not only to increase the sectoral value added of the economy but also to improve the position of the trade balance in the commodity trade front. iran, being characterized a sole mon...

We show that relaxing the assumption of CES preferences in monopolistic competition has surprising implications when trade is restricted. Integrated and segmented markets behave differently, the latter typically exhibiting reciprocal dumping. Globalization and lower trade costs have different effects: the former reduces spending on all existing varieties, the latter switches spending from home ...