Despite more than a quarter century of intense research into the phenomenon of intra-industry trade (the import and export of goods belonging to the same industry, hereafter abbreviated as IIT), several important puzzles remain: the existence of IIT even at highly disaggregated levels of...

For most developed countries, "opening up" of the economy has meant the reduction of non-prohibitive tariffs and the easing or abolition of quantitative restrictions. For manydeveloping countries and economies in transition, however, it often requires the relaxation of autarkic policies such as...

This paper examines the effects of foreign entry, in the form of either imports or direct foreign investment, into an oligopolistic market. It shows that foreign entry can reduce welfare relative to autarky unless at least some domestic firms exit, or unless the foreign firms capture a very...