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Trade volume and country size in a Heckscher-Ohlin model

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>2008
<mark>Journal</mark>Economics Bulletin
Issue number1
Volume6
Number of pages7
Pages (from-to)1-7
Publication StatusPublished
<mark>Original language</mark>English

Abstract

This paper develops a model of international trade based on differences in factor endowments across countries. We use this model to show that in such an environment, holding relative endowments and the size of the world economy constant, the volume of trade increases as countries become more similar to each other in terms of their relative sizes.