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Comparative Advantage, Geographic Advantage and the Volume of Trade

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Author Info
Rauch, James E

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Abstract

A 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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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 101 (1991)
Issue (Month): 408 (September)
Pages: 1230-44
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Handle: RePEc:ecj:econjl:v:101:y:1991:i:408:p:1230-44

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bowen, Harry P & Leamer, Edward E & Sveikauskas, Leo, 1987. "Multicountry, Multifactor Tests of the Factor Abundance Theory," American Economic Review, American Economic Association, vol. 77(5), pages 791-809, December. [Downloadable!] (restricted)
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  2. Rauch, James E., 1989. "Increasing returns to scale and the pattern of trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 359-369, May. [Downloadable!] (restricted)
  3. Starrett, David A., 1974. "Principles of optimal location in a large homogeneous area," Journal of Economic Theory, Elsevier, vol. 9(4), pages 418-448, December. [Downloadable!] (restricted)
  4. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
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  5. Patricia E. Beeson & Randall W. Eberts, 1987. "Identifying amenity and productivity cities using wage and rent differentials," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 16-25. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration effects in border regions - a survey of economic theory and empirical studies," ERSA conference papers ersa02p066, European Regional Science Association. [Downloadable!]
  2. Barjak, Franz & Heimpold, Gerhard, 1999. "Development Problems and Policies at the German Border with Poland," ERSA conference papers ersa99pa136, European Regional Science Association. [Downloadable!]
  3. Edward E. Leamer & James Levinsohn, 1994. "International Trade Theory: The Evidence," NBER Working Papers 4940, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration Effects in Border Regions - A Survey of Economic Theory and Empirical Studies," Discussion Paper Series 26340, Hamburg Institute of International Economics. [Downloadable!]
  5. James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Olga Alonso Villar, . "El analisis economico de los procesos de urbanizacion," Documentos de trabajo - Análise Económica 0004, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia. [Downloadable!]
  7. Gordon H. Hanson, 1998. "North American Economic Integration and Industry Location," NBER Working Papers 6587, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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