“
Economies of scale and the volume of
intra-industry trade ”, Economics Letters v74,
2001,
pp127-132,
(with
Nicolas
Schmitt).
Using a model of monopolistic competition with
traded and non-traded goods (i.e. heterogeneous exporters), 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. (
pdf file)