Comparative Advantage, Geographic Advantage and the Volume of Trade
AbstractA functional relationship between the degree of a country's comparative advantage and the volume of its net exports of any good to its trading partner is established using a model with per-unit-distance transportation costs between countries' coasts and their interiors. The greater a country's comparative advantage, the deeper its exports penetrate geographically into its trading partner. The internal spatial structure of a country consists of cities on a river. It is shown that population sizes, wage rates, and residential rental rates are greatest in the port city and decline monotonically as one moves inland. Copyright 1991 by Royal Economic Society.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 101 (1991)
Issue (Month): 408 (September)
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Other versions of this item:
- James E. Rauch, 1990. "Comparative Advantage, Geographic Advantage, and the Volume of Trade," NBER Working Papers 3512, National Bureau of Economic Research, Inc.
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