Entrepreneurship and intra-industry trade
Weltwirtschaftliches Archiv , Volume 138 - Issue 2 p. 277- 290
Entrepreneurship and Intra-Industry Trade. The paper introduces entrepreneurs into the theories of intra-industry trade and investigates the role of a country's "entrepreneurship" in international trade. It is shown that the relative entrepreneurship between countries determines the terms of trade but the welfare effects are not obvious. Among other things, it is found that (1) an increase in exports improves the terms of trade and (2) an increase in country size is not always beneficial.