On Nations' Size and Transportation Costs
AbstractThis paper develops a noncooperative Nash model in which a closed border is opened to trade between countries that differ in size and transportation costs. The paper suggests an explanation as to why economists have not convinced policymakers to lift all barriers to free trade. The questions we pose are: Who will gain as a result of opening the borders? Is free trade beneficial to the two parties involved? Do they both share equally in the fruits of free trade? Which country, large or small, benefits most? It is shown that free trade is not beneficial to both countries. Copyright 1995 by Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 3 (1995)
Issue (Month): 2 (June)
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