Title of article
Globalizationandindividualgainsfromtrade
Author/Authors
Kristian Behrens، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
18
From page
703
To page
720
Abstract
We analyzetheimpactofglobalizationonindividualgainsfromtradeinageneral
equilibriummodelofmonopolisticcompetitionfeaturingproductdiversity,pro-
competitiveeffectsandincomeheterogeneitybetweenandwithincountries.Although
trade reducesmarkupsinbothcountriesinourframework,itsimpactonvarietydepends
on theirrelativepositionintheworldincomedistribution:productdiversityinthelower
income countryalwaysexpands,whilethatinthehigherincomecountrymayshrink.
When thelatteroccurs,thericherconsumersinthehigherincomecountrymaylose
from tradebecausetherelativeimportanceofvarietyversusquantityincreaseswith
income.UsingdataonGDPpercapitaandpopulation,aswellasontheU.S.income
distribution,ourtheoreticalresultsareillustratedintwodifferentcontexts:the
hypotheticalbilateraltradeliberalizationbetweentheU.S.and188countries;andthe
historicalsequenceofU.S.freetradeagreementssince1985
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846552
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