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A Decomposition of Ricardian Trade Gains under External Economies of Scale


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  • Toru Kikuchi

    (Graduate School of Economics, Kobe University)

  • Ngo Van Long

    (Department of Economics, McGill University)


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.

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Bibliographic Info

Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1001.

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Length: 10pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:koe:wpaper:1001

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Keywords: Trade Gains; Ricardian Trade Model; External Economies of Scale; Graph of the Labor Market;

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