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The gains from external scale economies and comparative advantage

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>2014
<mark>Journal</mark>Economics Bulletin
Issue number1
Volume34
Number of pages5
Pages (from-to)84-88
Publication StatusPublished
Early online date20/01/14
<mark>Original language</mark>English

Abstract

This note develops a model of inter-personal trade which combines comparative advantage and external scale economies. It is shown that the gains from external scale economies outweigh those from comparative advantage as the population size increases.