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dc.contributor.authorBehrens, Kristianen_US
dc.contributor.authorLamorgese, Andrea R.en_US
dc.contributor.authorOttaviano, Gianmarco I. P.en_US
dc.contributor.authorTabuchi, Takatoshien_US
dc.description.abstractThe standard two-country model of international trade with monopolistic competition predicts a more-than-proportional relationship between a country's share of world production of a good and its share of world demand for that same good, a result known as the home market effect. We first show that this prediction does not generally carry through to the multi-country case, as production patterns are crucially affected by third country effects. We then derive an alternative prediction that holds whatever the number of countries considered. This new prediction takes into account important features of the real world such as comparative advantage due to cross-country technological differences and lack of factor price equalization.en_US
dc.publisher|aFondazione Eni Enrico Mattei (FEEM) |cMilanoen_US
dc.relation.ispartofseries|aNota di lavoro // Fondazione Eni Enrico Mattei: Global challenges |x119.2009en_US
dc.subject.keywordComparative Advantageen_US
dc.subject.keywordHome Market Effecten_US
dc.subject.keywordHub Effecten_US
dc.subject.keywordInternational Tradeen_US
dc.subject.keywordMonopolistic Competitionen_US
dc.subject.keywordMulti-country Modelsen_US
dc.titleBeyond the home market effect: Market size and specialization in a multi-country worlden_US
dc.typeWorking Paperen_US

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