Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2008 erstellt
Description:
We study a world with national external economies of scale at the industry level. In contrast to the standard treatment with perfect competition and two industries, we assume Bertrand competition in a continuum of industries. In this setting, many of the quot;pathologiesquot; of the standard treatment disappear. There typically exists a unique equilibrium with trade guided by quot;naturalquot; comparative advantage. And, when a country has CES preferences and any finite elasticity of substitution between goods, gains from trade are assured