The Ricardo-Viner trade model with an intermediate good

This paper incorporates an intermediate good into the Ricardo-Viner trade m odel. One of the sector-specific factors in the Ricardo-Viner model is repl aced with a sector-specific intermediate good. We are primarily concerned w ith comparisons between the results of our model and those of the Ricardo-V iner model. Most of the basic results of the Ricardo-Viner model are drasti cally changed in our model. Furthermore, this paper studies various trade p atterns created by the presence of the intermediate good and the effects on an economy of a distortion-induced inflow of a factor.