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Laboratory research seminar

A report on "Two-factor model of international trade: a short-term balance" by Research Fellow Sergey Kichko

kichko_sergey_100x100
S. Kichko

On March 16 a report on "Two-factor model of international trade: a short-term balance" by Research Fellow 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.

  Download the report presentation "Two-factor model..."


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