Using a model of monopolistic competition with traded and non-traded goods, this paper establishes a positive link between scale economies, the volume of intra-industry trade and the share of trade in total production. These results are consistent with empirical findings.

" Horizontal Intra-industry Trade and the Growth of International Trade ”, chapter 3 in Frontiers of Research in Intra-industry Trade , edited by Peter Lloyd and H. Lee, pp33-48, Palgrave, 2002, (with Nicolas  Schmitt).

"The link between immigration and trade: evidence from the United Kingdom ” , Weltwirtschaftliches Archiv v138(1), 2002, pp115-130, (with S. Girma).

    This paper investigates the link between immigration and trade using recent U.K data. Imigration from non-Commonwealth countries is shown to have a significant export-enhancing effect. By contrast, immigration from Commonwealth countries is found to have no substantial impact on exports. We conjecture that this could be because immigrants from the U.K' s former colonies (viz.  Commonwealth countries) do not bring with them any new information that can help substantially reduce the transaction cost of trade between their home countries and the host nation. The study also reveals a pro-imports effect of immigration from the non-Commonwealth countries, whereas immigration from the Commonwealth appears to be reducing imports, perhaps reflecting trade-substituting activities by immigrants.

    This paper introduces entrepreneurs into a standard model of intra-industry trade to investigate how the relative entrepreneurship between countries affects the terms of trade and economic welfare.  The dichotomy  of firms generated in the paper provides new insight into the standard model of trade in differentiated products.