【摘要】We study how the level of trade costs and the intensity of competition interact to explainthe nature and intensity of trade within a given industry and the location of firms across countries.As trade costs decrease from very high to very low values, the global economy moves from autarky totwo-way trade, through one-way trade from the larger to the smaller region. By exploring the intensiveand extensive margins of exports, we investigate how the intensity of trade reacts to the degree ofcompetitiveness. Furthermore, when firms are free to change location, they flow from the small to thelarge country, and the larger country is always a net exported on the manufactured good. Firms locatedin the big country have a bigger size than those located in the small one. Under one-way trade, therelocation of firms changes their attitude toward export.

【文献来源】 Okubo T;Picard P M;Thisse J F.Annals of regional Science.2014(5)