TY - GEN AB - This paper examines the various aspects of trade liberalization with heterogeneous firms using the Melitz (2003) model.We find a number of novel results and effects including a Stolper–Samuelson-like result and several results related to the volume of trade, which are empirically testable. We also analyze what might be called an anti-variety effect as the result of trade liberalization.We show that this effect is most pronounced for small countries.This resonates with the often voiced criticism from antiglobalists that globalization leads the world to become more homogeneous by eliminating local specialties. Nevertheless, we find that trade liberalization always leads to welfare gains in the model. AU - Baldwin, Richard E AU - Forslid, Rikard DA - 2010 DO - 10.1111/j.1467-9361.2010.00545.x DO - doi ID - 292211 L1 - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf L1 - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf?subformat=pdfa L2 - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf L2 - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf?subformat=pdfa L4 - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf L4 - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf?subformat=pdfa LK - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf LK - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf?subformat=pdfa N2 - This paper examines the various aspects of trade liberalization with heterogeneous firms using the Melitz (2003) model.We find a number of novel results and effects including a Stolper–Samuelson-like result and several results related to the volume of trade, which are empirically testable. We also analyze what might be called an anti-variety effect as the result of trade liberalization.We show that this effect is most pronounced for small countries.This resonates with the often voiced criticism from antiglobalists that globalization leads the world to become more homogeneous by eliminating local specialties. Nevertheless, we find that trade liberalization always leads to welfare gains in the model. PY - 2010 T1 - Trade liberalization with heterogeneous firms TI - Trade liberalization with heterogeneous firms UR - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf UR - https://repository.graduateinstitute.ch/record/292211/files/RDE_Baldwin_2010.pdf?subformat=pdfa Y1 - 2010 ER -