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Okubo, T., & Tomiura, E. (2010). Productivity Distribution, Firm Heterogeneity, and Agglomeration: Evidence from Firm-Level Data. RIETI Discussion Paper Series. Research Institute for Economics and Business Administration ((RIETI).

has been cited by the following article:

• TITLE: The Role of Intra-National Trade in Trade Theory

  AUTHORS: Yong He, Guangzhen Sun

  KEYWORDS: Intra-National and International Trade, Heterogeneous Firm Model, Market Selection, Comparative Advantage

  JOURNAL NAME: Theoretical Economics Letters, Vol.12 No.6, December 27, 2022

  ABSTRACT: This paper explores the implications arising from the heterogeneous firm model for a theory of trade in which intranational trade is an intrinsic part, and international trade is its extension. Due to market competition, intranational trade dynamically leads to an increase in productivity heterogeneity across firms, which strengthens market selection and makes allocation more efficient. It also strengthens comparative advantage, and thus stimulates international trade.