Center Research Seminar. Speaker: Research Fellow Sergey Kichko

A report on «Two-factor trade model with monopolistic competition» by Research Fellow of the TMSE Sergey Kichko.

S. Kichko

On May 8, 2012 a report on «Two-factor trade model with monopolistic competition» by Research Fellow of MSSE Sergey Kichko.

We develop a two-factor trade model with monopolistic competition, a variable elasticity of substitution and trade cost. We show that the country endowed with more capital is a net exporter of manufactured good and its capital price is smaller. The relative GDP share of the capital-endowed country is smaller than its relative share in capital. Last, dumping or reverse dumping may aim depending on consumers' altitude towards variety love and countries relative capital endowment.

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