On the impact of trade on the industrial structures of nations
(2011) International Journal of Economic Theory — Vol. 7, n° 1, p. 93-109 (2011)
Files
Thisse1.pdf
Closed Access - Adobe PDF
- 199.81 KB
Details
- Authors
- Abstract
- This paper investigates the impact of progressive trade openness on the formation of entrepreneurship in a two-country occupation choice model with monopolistic competition. We show that trade opening gives rise to a non-monotonic process of international specialization, in which the share of entrepreneurial firms in the large (small) country first increases (decreases) and then decreases (increases), with the global economy exhibiting first deindustrialization and then reindustrialization.
- Affiliations
University of Tokyo Faculty of OEconomics Osaka University Graduate School of Economics University of Tokyo Faculty of Economics
Citations
Oyama, D., Sato, Y., Tabuchi, T., & Thisse, J.-F. (2011). On the impact of trade on the industrial structures of nations. International Journal of Economic Theory, 7(1), 93-109. https://doi.org/10.1111/j.1742-7363.2010.00151.x (Original work published 2011)