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Author:Davis, D.
Title:The home market, trade, and industrial structure
Journal:American Economic Review
1998 : DEC, VOL. 88:5, p. 1264-1276
Index terms:ECONOMICS
MARKETS
TRADE
Language:eng
Abstract:Does national market size matter for industrial structure? This has been suggested by theoretical work on "home market" effects. In the present paper the author shows that what previously was regarded as an assumption of conveniece -- transport costs only for the differentiated goods -- matters a great deal. In a focal case in which differentiated and homogeneous goods have identical transport costs, the home market effect disappears.
SCIMA record nr: 189712
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