Davis, D.R.; Weinstein, D.E. - Harvard Institute for International Development (HIID), … - 1997
There are two principal theories of why countries trade: comparative advantage and increasing returns to scale. Yet … structure and trade. We use a framework that nests an increasing returns model of economic geography featuring "home market …" effects with that of Heckscher-Ohlin. We employ these trade models to account for the structure of OECD manufacturing …