TY  - JOUR
AU  - Demidova,Svetlana
AU  - Krishna,Kala
TI  - Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model: A Comment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12949
PY  - 2007
Y2  - March 2007
UR  - http://www.nber.org/papers/w12949
L1  - http://www.nber.org/papers/w12949.pdf
N1  - Author contact info:
Svetlana Demidova
Department of Economics
McMaster University
Canada
E-Mail: demidov@mcmaster.ca

Kala Krishna
Department of Economics
523 Kern Graduate Building
The Pennsylvania State University
University Park, PA 16802
Tel: 814/865-1106
Fax: 814/863-4775
E-Mail: kmk4@psu.edu
AB  - This paper shows that the results of Venables (1987) depend critically on the assumption that there are no fixed costs of trade. The introduction of fixed costs of exporting, while making the model more consistent with the empirical evidence, leads to the opposite conclusion that technological progress in one country cannot harm the welfare of its trading partner. However, the results can be obtained in a richer setting with heterogeneous firms.
ER  -