Hummels, David. <br/><br/>
Monopolistic Competition and International Trade:  Reconsidering the Evidence / 
David Hummels, James Levinsohn. 
 - Cambridge, Mass.  National Bureau of Economic Research  1993. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w4389 .
 - Working Paper Series (National Bureau of Economic Research)  no. w4389. .
<br/><br/> June 1993. 
<br/><br/> In this paper, we test some propositions about international trade flows that are derived from a model of monopolistic competition developed by Elhanan Helpman. We investigate whether the volume of trade between OECD countries is consistent with the predictions of a modal in which all trade is intra-industry trade in differentiated products. We then repeat the test with non-OECD countries. We also investigate whether the share of intra-industry trade is consistent with a more general theoretical model in which some, but not all, trade is intra-industry trade. Our results lead us to question the apparent empirical success of these models. 
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