GEP Research Paper 01/17
Entrepreneurship and Intra-Industry Trade
Z. Yu
This paper was subsequently published in Weltwirtschaftliches Archiv, Vol.138 (2), 2002, pp.227-290.
Abstract
The paper introduces entrepreneurs into the theories of intra-industry trade and investigates the role of a country's "entrepreneurship" in international trade. It is shown that the relative entrepreneurship between countries determines the terms of trade but the welfare effects are not obvious. Among other things, it is found that 1) an increase in exports improves terms of trade and 2) an increase in country size is not always beneficial.
Issued in August 2001.
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