The Home Market Effect and Bilateral Trade Patterns
构建多行业垄断竞争贸易模型，发现高运输成本、高产品差异化的行业更集中于大国，并用差分法引力模型验证了该预测。
We develop a monopolistic-competition model of trade with many industries to examine how home-market effects vary with industry characteristics. Industries with high transport costs and more differentiated products tend to be more concentrated in large countries than industries with low transport costs and less differentiated products. We test this prediction using a difference-in-difference gravity specification that controls for import tariffs, importing-country remoteness, home bias in demand, and the tendency for large countries to export more of all goods. We find strong evidence of home-market effects whose intensity varies across industries in a manner consistent with theory.