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Spatial discrimination, nations' size and transportation costs
- In this paper we develop a spatial Cournot trade model with two unequally sized countries, using the geographical interpretation of the Hotelling line. We analyze the trade and welfare effects of international trade between these two countries. The welfare analysis indicates that in this framework the large country benefits from free trade and the small country may be hurt by opening to trade. This finding is contrary to the results of Shachmurove and Spiegel (1995) as well as Tharakan and Thisse (2002), who use related models to analyze size effects in international trade, where the small country usually gains from trade and the large country may lose.
Author details: | Kai Andree |
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URN: | urn:nbn:de:kobv:517-opus-48117 |
Publication series (Volume number): | Volkswirtschaftliche Diskussionsbeiträge (101) |
Publication type: | Working Paper |
Language: | English |
Publication year: | 2010 |
Publishing institution: | Universität Potsdam |
Release date: | 2010/09/27 |
Tag: | Außenwirtschaftstheorie; Landesgröße; Neue ökonomische Geographie; Räumlicher Wettbewerb; Transportkosten; Zwei-Länder-Modell |
RVK - Regensburg classification: | QD 100 |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
License (German): | Keine öffentliche Lizenz: Unter Urheberrechtsschutz |