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  • RicardoSraffaSamuelson IREF Final

    Rights statement: This is the author’s version of a work that was accepted for publication in International Review of Economics & Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Review of Economics & Finance, 54, 2018 DOI: 10.1016/j.iref.2017.08.013

    Accepted author manuscript, 383 KB, PDF document

    Available under license: CC BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License

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The gains from trade in intermediate goods: A Ricardo-Sraffa-Samuelson model

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

Published
<mark>Journal publication date</mark>03/2018
<mark>Journal</mark>International Review of Economics and Finance
Volume54
Number of pages18
Pages (from-to)244-261
Publication StatusPublished
Early online date1/09/17
<mark>Original language</mark>English

Abstract

This paper develops a model of intermediate and final goods trade based on comparative advantage. Firms endogenously decide whether to produce a final good directly using labour, or indirectly using both labour and intermediate inputs. It is shown that the gains from trade in intermediate and final goods exceeds that from trade in final goods alone. Falling trade and coordination costs result in an endogenous change in the structure of production towards a more fragmented structure, with corresponding implications for trade patterns.

Bibliographic note

This is the author’s version of a work that was accepted for publication in International Review of Economics & Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Review of Economics & Finance, 54, 2018 DOI: 10.1016/j.iref.2017.08.013