{"id":443,"date":"1995-01-01T10:20:00","date_gmt":"1995-01-01T09:20:00","guid":{"rendered":"http:\/\/people.unil.ch\/mariusbrulhart\/?p=443"},"modified":"2023-02-02T14:42:07","modified_gmt":"2023-02-02T13:42:07","slug":"scale-economies-intra-industry-trade-and-industry-location-in-the-new-trade-theory","status":"publish","type":"post","link":"https:\/\/people.unil.ch\/mariusbrulhart\/1995\/01\/scale-economies-intra-industry-trade-and-industry-location-in-the-new-trade-theory\/","title":{"rendered":"Scale Economies, Intra-Industry Trade and Industry Location in the New Trade Theory"},"content":{"rendered":"\n<p><em>Trinity Economic Papers,\u00a0<\/em>Technical Paper No. 95\/4,\u00a01995. <a href=\"https:\/\/people.unil.ch\/mariusbrulhart\/files\/2023\/02\/tep954.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">See paper<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper exposes some common misinterpretations of the &#8220;new trade theory&#8221;. First, the view that high scale economies give rise to high levels of intra-industry trade is challenged. It is shown that the monopolistic-competition trade model predicts a negative relationship between internal scale economies and intraindustry trade. Second, in spite of a common perception that the &#8220;new&#8221; theory explains ever growing levels of intra-industry trade in an integrating world economy, a scrutiny of the basic model indicates that reduced distance costs result in lower intra-industry trade. However, if temporary re-location rigidities are considered, integration entails an initial surge of intra-industry trade, which eventually withers away, when the centripetal forces towards inter-industry specialisation take over. This might contribute towards an explanation for observed reversals of intra-industry trade growth among industrial countries.<\/p>\n","protected":false},"author":1001107,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[9],"tags":[],"class_list":{"0":"post-443","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-unpublished-working-paper"},"_links":{"self":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/users\/1001107"}],"replies":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/comments?post=443"}],"version-history":[{"count":0,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/443\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/media?parent=443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/categories?post=443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/tags?post=443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}