On the home market effect: theory and empirical evidence

Trionfetti, Federico (1999) On the home market effect: theory and empirical evidence. CEPDP (430). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 075301288X

Preview

PDF Download (147kB) | Preview

Abstract

This paper addresses the question of how to discriminate between the H-O paradigm and the C-H-O paradigm of international trade. The test is based on the home-biased expenditure. The model predicts a positive relationshipp between a country''s share of world''s output (in any particular sector) and the country''s share of world''s home-biased expenditure if and only if the sector is characterize4d by IRS and monopolistic competition. The Empirical implementation showed an important but not overwhelming presence of the relationship. Specifically, 55% of the industrial activity could be attributed to the H-O paradigm while 45% could be attributed to the C-H-O paradigm.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 1999 Trionfetti
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HB Economic Theory
Date Deposited:	31 Jul 2008 08:52
Last Modified:	13 Sep 2024 19:40
URI:	http://eprints.lse.ac.uk/id/eprint/20215

Actions (login required)

View Item