English, Article, Journal or magazine article edition: Trade Costs and the Home Market Effect Matthieu Crozet; Federico Trionfetti

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Bookmark: http://trove.nla.gov.au/version/158863
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Trade Costs and the Home Market Effect
Author
  • Matthieu Crozet
  • Federico Trionfetti
Physical Description
  • preprint
Notes
  • Most of the theoretical and empirical studies on the Home Market Effect (HME) assume the existence of an “outside good” that absorbs all trade imbalances and equalizes wages. We study the consequences on the HME of removing this assumption. The HME is attenuated and, more interestingly, it becomes non-linear. The non-linearity implies that the HME is more important for very large and very small countries than for medium size countries. The empirical investigation conducted on a database comprising 25 industries, 25 countries, and 7 years confirms the presence of the HME and of its non-linear shape.
  • International trade; test of trade theories; economic geography; models; home market effect; market access; international trade theory
  • RePEc:cii:cepidt:2007-05
Language
  • English
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