Behrens, Kristian; Lamorgese, Andrea R.; Ottaviano, … - KITeS, Centre for Knowledge, Internationalization and … - 2009
The standard two-country model of international trade with monopolistic competition predicts a more-than-proportional relationship between a country’s share of world production of a good and its share of world demand for that same good, a result known as the ‘home market effect’. We first...