IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v8y2000i4p667-680.html
   My bibliography  Save this article

Comparative Advantage and Economies of Scale: When Does Ricardo Dominate Smith?

Author

Listed:
  • Hildegunn Kyvik Nordås

Abstract

This paper develops a two‐country, two‐sector (X and Y) model of international trade. One country has comparative advantage in the increasing returns Y‐sector. The direction of trade depends on the relative size of the countries and the relative strength of economies of scale and comparative advantage. An equilibrium where the smallest country exports the Y‐good and the largest country loses from trade is possible. A dynamic equilibrium where the X‐sector is subject to learning by doing locks in the initial pattern of specialization. Yet, there may be few welfare gains from protecting the X‐sector in the small country.

Suggested Citation

  • Hildegunn Kyvik Nordås, 2000. "Comparative Advantage and Economies of Scale: When Does Ricardo Dominate Smith?," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 667-680, November.
    • Handle: RePEc:bla:reviec:v:8:y:2000:i:4:p:667-680
    DOI: 10.1111/1467-9396.00249
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9396.00249
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9396.00249?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:8:y:2000:i:4:p:667-680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.