NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Industrial Organization and International Trade

Paul Krugman

NBER Working Paper No. 1957
Issued in June 1986
NBER Program(s):   ITI   IFM

This paper reviews recent work on the relationship between industrial

organization and international trade. Five strands in the theoretical

literature are discussed. First is the role of economies of scale

as a cause of intra-industry trade, modelled using monopolistic competition.

Second is the effect of tariffs and quotas on domestic market

power. Third is the analysis of dumping as international price discrimination.

Fourth is the potential strategy role of government policy as an

aid to domestic firms in oligopolistic competition. Finally, the paper

discusses recent work that may provide a new argument for protectionism.

A concluding section discusses recent efforts at quantification of new

trade theory.

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Document Object Identifier (DOI): 10.3386/w1957

Published:

  • Published as "Increasing Returns, Monopolistic Competition, and International Trade", Journal of International Economics, Vol. 9, no. 4(1979): 469-480.
  • Krugman, Paul R., 1989. "Industrial organization and international trade," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 20, pages 1179-1223 Elsevier.

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