초록 close

The impact of international trade on a firm’s degree of specialization andincome distribution is studied in a general equilibrium framework in which firmsengage in oligopolistic competition. International trade increases a firm’s degreof specialization, but the number of goods a country produces may not change.Trade may lower the welfare of the scarce factor of production. Sufficientconditions for a country’s welfare to increase with trade are provided. JEL classification: F12