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The Greater the Differences, the Greater the Gains?

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  • Wilfred J. Ethier

    ()
    (Department of Economics, University of Pennsylvania)

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://www.iset.ge/files/001-08.pdf
File Function: Revised version, 2008
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Bibliographic Info

Paper provided by International School of Economics at TSU, Tbilisi, Republic of Georgia in its series Working Papers with number 001-08.

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Length: 10 pages
Date of creation: Nov 2007
Date of revision: Mar 2008
Handle: RePEc:tbs:wpaper:08-001

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Keywords: trade gains; international differences;

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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.
  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.
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