Resource title

Does the Home Market Effect Arise in a Three-Country Model?

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Resource description

It is uncertain whether the fundamental ?home market effect? (HME) generalizes from a two-country model to a more realistic setting with multiple countries. We present a three-country version of the seminal model by Krugman (1980) and analyse under which circumstances the HME is present once third country effects are taken into account. We show that both expenditure shifts and exogenous enlargements among foreign countries can rule out the HME.

Resource author

Jens S├╝dekum

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22169

Resource license

Adapt according to the presented license agreement and reference the original author.