Integration, Fragmentation and the Geography of Welfare
在垄断竞争框架下研究贸易一体化对福利的影响,发现碎片化作为技能密集型活动时,要素比例而非规模决定贸易收益的国际分配,但技能贫乏国家也可能获益。
Abstract The welfare effects of trade integration with endogenous production technology are examined in a monopolistic competition framework. In addition to explaining industry location, trade patterns and accompanying effects on local welfare, the analysis highlights the endogenous change in the costs of supervising fragmented production when economies open up to trade. By regarding fragmentation as a skill‐intensive activity, factor proportions (rather than size) strongly affect the international distribution of gains from trade. Nevertheless, albeit not generally, for a wide range of parameter values, even a skill‐poor country can participate in the gains—despite loss of industry.