The gains from external scale economies and comparative advantage
This note develops a model of inter-personal trade which combines comparative advantage and external scale economies. It is shown that the gains from external scale economies outweigh those from comparative advantage as the population size increases.
Volume (Year): 34 (2014)
Issue (Month): 1 ()
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- Nordas, Hildegunn Kyvik, 2000. "Comparative Advantage and Economies of Scale: When Does Ricardo Dominate Smith?," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 667-80, November.
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90-04, Michigan - Center for Research on Economic & Social Theory.
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- James R. Melvin, 1969. "Increasing Returns to Scale as a Determinant of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 2(3), pages 389-402, August.
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- Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
- Ruffin, Roy J., 2009. "The gains from specialization and population size," Economics Letters, Elsevier, vol. 105(1), pages 76-77, October.
- Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, June.
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