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Mon, Jan 22, 2018, noon: Narayan Sastry

International Trade with Lumpy Countries

Archived Abstract of Former PSC Researcher

Courant, Paul, and Alan Deardorff. 1992. "International Trade with Lumpy Countries." Journal of Political Economy, Vol 100 (February), 198-210.

This paper explores the implications for the pattern of international trade of differences among regions within countries--what we call "lumpiness." If factors of production are sufficiently unevenly distributed across regions, then the pattern of trade of the country as a whole may depart from what it would have been had factors been evenly distributed. Thus lumpiness in the geographical distribution of factors can be a determinant of trade. We show in particular that if other determinants of trade are absent, then a country will tend to export the good that intensively uses its lumpier (i.e., more unevenly distributed) factor.

DOI:10.1086/261813 (Full Text)

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