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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.

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  • 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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    1. Alan V. Deardorff, 2011. "The General Validity of the Heckscher-Ohlin Theorem," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 11, pages 91-103, World Scientific Publishing Co. Pte. Ltd..
    2. James R. MARKUSEN, 2021. "Trade And The Gains From Trade With Imperfect Competition," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 14, pages 303-323, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

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    3. Karlhans Sauernheimer & Friedrich L. Sell & Udo Broll, 2001. "More free trade or slower pace of liberalisation - What results can be expected from the WTO Conference?," 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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