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Trade volume and country size in the Heckscher-Ohlin model

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  • Kwok Tong Soo

    (Lancaster University)

Abstract

This paper develops a model of international trade based on differences in factor endowments across countries. We use this model to show that in such an environment, holding relative endowments and the size of the world economy constant, the volume of trade increases as countries become more similar to each other in terms of their relative sizes.

Suggested Citation

  • Kwok Tong Soo, 2008. "Trade volume and country size in the Heckscher-Ohlin model," Economics Bulletin, AccessEcon, vol. 6(1), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07f10022
    as

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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume6/EB-07F10022A.pdf
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    References listed on IDEAS

    as
    1. David Hummels & James Levinsohn, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 799-836.
    2. Debaere, Peter, 2005. "Monopolistic competition and trade, revisited: testing the model without testing for gravity," Journal of International Economics, Elsevier, vol. 66(1), pages 249-266, May.
    3. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
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    JEL classification:

    • F1 - International Economics - - Trade

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