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| Author: | Yu, Z. |
| Title: | Entrepreneurship and Intra-Industry Trade |
| Journal: | Weltwirtschaftliches Archiv
2002 : VOL. 138:2, p. 277-290 |
| Index terms: | ENTREPRENEURSHIP INTRA-INDUSTRY TRADE ANALYTICAL REVIEW |
| Language: | eng |
| Abstract: | The main findings are as follows. First, the relative entrepreneurship affects the terms of trade between the two countries. A country with relatively high entrepreneurship, ceteris paribus, is able to export more varieties of its products and thus has better terms of volume of total exports in the authors' model is positively (rather than negatively) associated with an improvement in the terms of trade. Second, the welfare effects are not obvious, however. In particular, an increase in a country's entrepreneurship has two effects. On the one hand, it improves its terms of trade. On the other hand, it reduces the level of varieties produced at home. |
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