Journal of Economic Integration
The impact of international trade on a firm’s degree of specialization and income distribution is studied in a general equilibrium framework in which firms engage in oligopolistic competition. International trade increases a firm’s degree of specialization, but the number of goods a country produces may not change. Trade may lower the welfare of the scarce factor of production. Sufficient conditions for a country’s welfare to increase with trade are provided.
Copyright © 2006 Journal of Economic Integration.
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Original Publication Citation
Zhou, H. (2006). Intra-firm specialization, income distribution, and international trade. Journal of Economic Integration, 21(3), 577-592. https://doi.org/10.11130/jei.2006.21.3.577
Zhou, Haiwen, "Intra-Firm Specialization, Income Distribution, and International Trade" (2006). Economics Faculty Publications. 54.