TY  - JOUR
AU  - Hummels,David
AU  - Levinsohn,James
TI  - Monopolistic Competition and International Trade: Reconsidering the Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4389
PY  - 1993
Y2  - June 1993
UR  - http://www.nber.org/papers/w4389
L1  - http://www.nber.org/papers/w4389.pdf
N1  - Author contact info:
David Hummels
Krannert School of Management
403 West State Street
Purdue University
West Lafayette, IN  47907-1310
Tel: 765/494-4495
Fax: 765/494-9658
E-Mail: hummelsd@purdue.edu

James A. Levinsohn
Yale School of Management
PO Box 208200
New Haven, CT  06520
Tel: 734/763-2319
Fax: 734/764-2769
E-Mail: James.Levinsohn@yale.edu
AB  - 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.
ER  -