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The Greater the Differences, the Greater the Gains?, Second Version

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Author Info
Wilfred J. Ethier () (Department of Economics, University of Pennsylvania)

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Abstract

This 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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File URL: http://economics.sas.upenn.edu/system/files/08-009.pdf
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Publisher Info
Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 08-009.

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Length: 13 pages
Date of creation: 30 Nov 2007
Date of revision: 26 Feb 2008
Handle: RePEc:pen:papers:08-009

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Web page: http://economics.sas.upenn.edu/pier
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Related research
Keywords: 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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  1. 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. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
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This page was last updated on 2009-12-2.

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