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Procompetitive Gains from Trade and Comparative Advantage

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  • Schweinberger, Albert G

Abstract

Having made the concepts of pro- or anticompetitive output changes precise, necessary and sufficient conditions for trade gains are derived under conditions of increasing returns to scale and imperfect competition in a general equilibrium model with any (finite) number of goods and factors. These conditions yield generalizations of the theorems of comparative advantage in goods and implicit factor trade (the factor content version of the H-O theorem). Other generalizations can be obtained if one assumes quasihomothetic preferences and that welfare effects are dominated by price rather than income effects. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Schweinberger, Albert G, 1996. "Procompetitive Gains from Trade and Comparative Advantage," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 361-375, May.
    • Handle: RePEc:ier:iecrev:v:37:y:1996:i:2:p:361-75
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    Cited by:

    1. Schweinberger, A.G. & Woodland, A.D., 2015. "Entrepreneurship and conflict generating product price changes," European Economic Review, Elsevier, vol. 78(C), pages 158-174.
    2. José Luis Moraga Gonzales & Jean-Marie Viaene, 2001. "Procompetitive Trade Policies," CESifo Working Paper Series 597, CESifo.
    3. Karlhans Sauernheimer & Friedrich L. Sell & Udo Broll, 2001. "Mehr Freihandel oder vermindertes Liberalisierungstempo - Welche Ergebnisse sind von der WTO-Konferenz zu erwarten?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(21), pages 03-10, October.

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