@techreport{NBERw4389, title = "Monopolistic Competition and International Trade: Reconsidering the Evidence", author = "David Hummels and James Levinsohn", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "4389", year = "1993", month = "June", URL = "http://www.nber.org/papers/w4389", abstract = {In this paper, we test some propositions about international trade flows that are derived from a model of monopolistic competition developed by Elhanan Helpman. We investigate whether the volume of trade between OECD countries is consistent with the predictions of a modal in which all trade is intra-industry trade in differentiated products. We then repeat the test with non-OECD countries. We also investigate whether the share of intra-industry trade is consistent with a more general theoretical model in which some, but not all, trade is intra-industry trade. Our results lead us to question the apparent empirical success of these models.}, }