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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The gains from trade revisited
AU - Soo, Kwok Tong
PY - 2011/4
Y1 - 2011/4
N2 - This paper revisits the issue of whether countries gain more from trading with countries that are similar to themselves, or with countries that are different. A model based on relative endowment and technological differences across countries is developed. The main result is that a country may experience a region of increasing gains from trade as its trading partner becomes more similar to itself in terms of relative endowments. The model also predicts that for countries with sufficiently similar relative endowments, both factors of production may experience gains from trade.
AB - This paper revisits the issue of whether countries gain more from trading with countries that are similar to themselves, or with countries that are different. A model based on relative endowment and technological differences across countries is developed. The main result is that a country may experience a region of increasing gains from trade as its trading partner becomes more similar to itself in terms of relative endowments. The model also predicts that for countries with sufficiently similar relative endowments, both factors of production may experience gains from trade.
KW - Gains from trade
KW - Neoclassical trade model
U2 - 10.1016/j.iref.2010.11.008
DO - 10.1016/j.iref.2010.11.008
M3 - Journal article
VL - 20
SP - 193
EP - 201
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
SN - 1059-0560
IS - 2
ER -