International Trade and Multinational Activity
Publication year: 2006
ISBN: 978-3-540-32719-6
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During the last 25 year, the neoclassical Heckscher-Ohlin trade theory has been extended to the ‘new’ trade theory by including imperfect competition and fixed costs into the analysis of trade relations. Furthermore, these micro-oriented trade models are increasingly used to analyze macro-oriented questions. Chapter 2 of this study investigates the dynamic welfare effects of exposure to trade in a new trade model, which is extended by firm heterogeneity.
Subject: Business and Economics, Firm Heterogeneity, Foreign Direct Investments, International Business, International Business Cycles, Trade theory
