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Job I; I .-)fbnternationai Economics 9 (1979) 469-479. 0 North-Hollan,l Publishing Company
INCREASING RETURK§, MONOPOLISTIC COMPETITION,
Ah D INTEIRN.QTIOI\;A L TRADE
Received November 1978, xvisr.d vxsion rscelved F‘ebruary 1979
This paper develops a simple, general equilibrium model of nonc0mparatii.e advantage trade.
Trade is driven by economies of scale, which are internal to firms. Because
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