Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/49499
Authors: 
Koska, Onur A.
Stähler, Frank
Year of Publication: 
2011
Series/Report no.: 
CESifo working paper: Trade Policy 3543
Abstract: 
This paper employs a general equilibrium model of imperfect competition and trade in which capital is used to establish firms and labor is used for production. We show that two different types of equilibria may exist, one with factor price equalization and one with different factor prices. When factor prices are equalized, trade improves welfare under relatively mild conditions. However, if factor prices differ, these conditions are not sufficient for mutual gains from trade.
Subjects: 
imperfect competition
international trade
general equilibrium
JEL: 
F12
D50
Document Type: 
Working Paper

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