Government size, product diversity and international trade

Sajid Anwar

    Research output: Contribution to journalComment/debate

    Abstract

    This paper develops a simple general equilibrium model to examine the impact on pattern of trade and product diversity of an increase in the size of the government. It extends the existing literature, relying on the limiting assumption of perfect competition on all markets by introducing Chamberlin-type monopolistic competition in the intermediate good sector. The analysis shows that in the context of a two (identical) countries world, an increase in the size of the government in the home country can induce specialization in the production of the intermediate good. The size of the government is measured by the quantity supply of a public good.
    Original languageEnglish
    Pages (from-to)1-9
    Number of pages9
    JournalJournal of Policy Modeling
    Volume20
    Issue number1
    DOIs
    Publication statusPublished - 1998

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