In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by Dixit Stiglitz (1977) with applications in international trade Krugman (1979,1980), modeling fixed variable costs production terms underlying use skilled unskilled labor a single good model. This is different from earlier work on multi sector variant cum Heckscher-Ohlin-Samuel...

In this paper we try to explain how well trading models in general can be used for international arms trading. We will study the evolution of main throughout history order see what ways they may adequate security and defence material trading, mainly focus Heckscher-Ohlin model. understand military equipment are going analyze industry’s composition, studying cases exporters importers, motivates ...

We illustrate a new source of comparative advantage that is generated by countries’ different ability to adjust technological change. Our model introduces substitution workers in codifiable (routine) tasks with more efficient machines, process extensively documented the labor literature, into canonical 2 × Heckscher-Ohlin model. key hypothesis reallocation across subject frictions, importance whic...

A half century of empirical work attempting to predict the factor content of trade in goods has failed to bring theory and data into congruence. Our study shows how the Heckscher-Ohlin-Vanek theory, when modified to permit technical differences, a breakdown in factor price equalization, the existence of nontraded goods, and costs of trade, is consistent with data from ten OECD countries and a r...

In a two-country infinite-horizon model, with two traded goods and two factors of production and no international borrowing and lending, there is no convergence of incomes if there is factor-price equalization. With factor-price equalization, the Euler equations of the two economies become identical. I show that in such a set-up if agents have a non-zero probability of death, then we do get con...