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The “New-New” Trade Theory: A Review of the Literature

  • Priya Ranjan
  • Jibonayan Raychaudhuri
Chapter

Abstract

We review the literature on the so-called “new-new” trade theory models starting with the pioneering work by Melitz (Econometrica, 71(6):1695–1725, 2003). We review some of the empirical work that motivated the development of these “new-new”  trade theory models. We provide a survey of the theoretical literature on the “new-new” trade theory models and give a short account of the recent empirical work in this area. We also discuss policy implications and welfare implications of trade liberalizations in the context of this framework.

Keywords

Trade Liberalization Stylize Fact Trade Cost Trade Flow Extensive Margin 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer India 2016

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of CaliforniaIrvineUSA
  2. 2.Department of EconomicsUniversity of East AngliaNorwichUK

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