Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach
This paper shows that Cournot competition in segmented markets generate both intra-industry trade and the gravity equation. The paper also demonstrates that the gravity equation holds if and only if the market shares of an exporting country do not depend on the market where it sells. Thus, the widel...
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Korea Institute for International Economic Policy
2000-12-01
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| Series: | East Asian Economic Review |
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| Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.4.72 |
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doaj-64cffdcd23a84799a83ee61f790f9ef62020-11-25T00:09:41ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672000-12-01443558http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.4.72Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach E. Young Song 0Sogang UniversityThis paper shows that Cournot competition in segmented markets generate both intra-industry trade and the gravity equation. The paper also demonstrates that the gravity equation holds if and only if the market shares of an exporting country do not depend on the market where it sells. Thus, the widely accepted wisdom that specialization generates the force of gravity is not well grounded on theory.http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.4.72Intra-industry TradeGravityCournot |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
E. Young Song |
| spellingShingle |
E. Young Song Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach East Asian Economic Review Intra-industry Trade Gravity Cournot |
| author_facet |
E. Young Song |
| author_sort |
E. Young Song |
| title |
Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach |
| title_short |
Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach |
| title_full |
Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach |
| title_fullStr |
Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach |
| title_full_unstemmed |
Intra-industry Trade and the Gravity Equation: A Cournot-Ricardo Approach |
| title_sort |
intra-industry trade and the gravity equation: a cournot-ricardo approach |
| publisher |
Korea Institute for International Economic Policy |
| series |
East Asian Economic Review |
| issn |
2508-1640 2508-1667 |
| publishDate |
2000-12-01 |
| description |
This paper shows that Cournot competition in segmented markets generate both intra-industry trade and the gravity equation. The paper also demonstrates that the gravity equation holds if and only if the market shares of an exporting country do not depend on the market where it sells. Thus, the widely accepted wisdom that specialization generates the force of gravity is not well grounded on theory. |
| topic |
Intra-industry Trade Gravity Cournot |
| url |
http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.4.72 |
| work_keys_str_mv |
AT eyoungsong intraindustrytradeandthegravityequationacournotricardoapproach |
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