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A Decomposition of Ricardian Trade Gains under External Economies of Scale

Author

Listed:
  • Toru Kikuchi

    (Graduate School of Economics, Kobe University)

  • Ngo Van Long

    (Department of Economics, McGill University)

Abstract

Although the one-factor Ricardian trade model with external economies of scale plays a significant role for the understanding of important trade issues under increasing returns, it lacks a compelling graphical representation. We propose a convincing graphical exposition that uses both the PPF and a labor market graph.

Suggested Citation

  • Toru Kikuchi & Ngo Van Long, 2010. "A Decomposition of Ricardian Trade Gains under External Economies of Scale," Discussion Papers 1001, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1001
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2010/1001.pdf
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    More about this item

    Keywords

    Trade Gains; Ricardian Trade Model; External Economies of Scale; Graph of the Labor Market;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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