Trade costs and the Home Market Effect

• 成果类型: Article
• 署名作者: Crozet, Matthieu; Trionfetti, Federico
• 署名单位: Universite de Reims Champagne-Ardenne; Aix-Marseille Universite
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2008.07.006
• 发表日期: 2008
• 页码: 309-321
• 关键词: International trade; Test of trade theories; Economic geography; Home market effect

摘要

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. (C) 2008 Elsevier B.V. All rights reserved.