Markusen, James R. - In: Journal of International Economics 90 (2013) 2, pp. 255-265
A major role for per-capita income in international trade, as opposed to simply country size, was persuasively advanced … competition, we can explain higher markups and higher price levels in higher per-capita income countries, and the puzzle that … predicts horizontal multinational activity is negatively related to per-capita income differences between countries. …