Monopolistic competition and trade, revisited: testing the model without testing for gravity

Taking the measure of things: the role of measurement in EU trade

“…The empirical analysis in the current paper is however based on bilateral trade flows between developed economies, almost certainly reducing the significance of vertical product differentiation, and the relevance of more traditional comparative advantage models of trade such as that advocated by Falvey (1981) based on perfectly competitive market structures. Moreover, research based on the 'Helpman equation' appears to confirm fully the relevance of the monopolistic competition model for trade between developed economies -as in our analysis here (Debaere 2005). In the light of these considerations, as well as its predominance in the literature on intra-industry trade, which partly reflects its analytical tractability, we consider the monopolistic completion as the appropriate vehicle for our theoretical model which follows.…”

Trade regimes and bilateral trade in the EU enlargement process: Focus on the Western Balkans

“…Contrary to this, the Linder hypothesis indicates that the closer countries in terms of their per capita incomes are, the larger the intra-industry trade between them. The empirical litera ture also suggests this specification for modelling bilateral trade of developed, mostly OECD countries, while there is no clear support for its usage in the case of less developed countries (Debaere 2005). Since a small part of exporters 11 CEE: Czech Republic, Slovakia, Poland, Hungary, Slovenia, Bulgaria, Romania, Estonia, Latvia, and Lithuania.…”

Vertical Specialization, Intermediate Tariffs, and the Pattern of Trade: Assessing the Role of Tariff Liberalization to U.S. Bilateral Trade 1989–2001

“…In recent years, empirical research 3 Debaere (2003) shows that the increasing similarity in GDP among OECD country pairs leads to higher bilateral trade to GDP ratios, suggesting some support for Helpman (1987), whose model explains intraindustry trade that is prevalent among developed countries. However, he also shows that Helpman's 3 has focused on the changing ranges of goods that countries export, and have observed non-negligible increases in this range among countries undergoing trade liberalizations.…”