The Greater the Differences, the Greater the Gains?, Second Version
AbstractThis paper addresses the fundamental question of whether, in a comparative-advantage context, the gains from trade will be greater when the differences between trading countries are greater. Such a presumption is established. The paper then discusses circumstances that could cause the presumption to fail.
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Bibliographic InfoPaper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 08-009.
Length: 13 pages
Date of creation: 30 Nov 2007
Date of revision: 26 Feb 2008
trade gains; international differences;
Find related papers by JEL classification:
- D60 - Microeconomics - - Welfare Economics - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
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- Grandmont, J. M. & McFadden, D., 1972. "A technical note on classical gains from trade," Journal of International Economics, Elsevier, vol. 2(2), pages 109-125, May.
- Kemp, Murray C & Wan, Henry Y, Jr, 1972. "The Gains from Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 509-22, October.
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