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International Trade with Lumpy Countries

In: Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff

Author

Listed:
  • Paul N. Courant

    (University of Michigan, USA)

  • Alan V. Deardorff

    (University of Michigan, USA)

Abstract

This paper explores the implications for the pattern of international trade of differences among regions within countries—what we call “lumpiness.” If factors of production are sufficiently unevenly distributed across regions, then the pattern of trade of the country as a whole may depart from what it would have been had factors been evenly distributed. Thus lumpiness in the geographical distribution of factors can be a determinant of trade. We show in particular that if other determinants of trade are absent, then a country will tend to export the good that intensively uses its lumpier (i.e., more unevenly distributed) factor.

Suggested Citation

  • Paul N. Courant & Alan V. Deardorff, 2011. "International Trade with Lumpy Countries," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 14, pages 141-154, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814340373_0014
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