GEP Research Paper 01/08
Economies of Scale and the Volume of Intra-Industry Trade
Nicolas Scmitt and Zhihao Yu
This paper was subsequently published in Economics Letters, 2001.
Abstract
We show that an increase in the degree of economies of scale raises the volume of intra-industry trade and the share of trade in total production in a model of monopolistic competition with traded and non-traded goods. This confirms the view that technological changes might have contributed to the high growth rate of trade observed during the post-war period.
Issued in May 2001.
This paper is available in PDF format .