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《Krugman-Scale Economies》.pdf
American Economic Association
Scale Economies, Product Differentiation, and the Pattern of Trade
Author(s): Paul Krugman
Reviewed work(s):
Source: The American Economic Review, Vol. 70, No. 5 (Dec., 1980), pp. 950-959
Published by: American Economic Association
Stable URL: /stable/1805774 .
Accessed: 21/01/2013 09:17
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Scale Economies, Product Differentiation,
and the Pattern of Trade
By PAUL KRUGMAN*
For some time now there has been con- from trade even if the economies have iden-
siderable skepticism about the ability of tical tastes, technology, and factor endow-
comparative cost theory to explain the ac- ments. This basic model of trade is pre-
tual pattern of international trade. Neither sented in Section I. It is closely related to a
the extensive trade among the industrial model I have developed elsewhere; in this
countries, nor the prevalence in this trade of paper a somewhat more restrictive formula-
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