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When autarky trumps free and costless trade

Author

Listed:
  • Morgan, John

    (Department of Economics, University of California, Berkeley)

  • Tumlinson, Justin

    (Department of Management, University of Exeter; TUM School of Management, Technical University of Munich,TUM School of Management)

  • Vardy, Felix

    (International Monetary Fund)

Abstract

In the context of Krugman (1979)'s canonical New Trade model, we demonstrate that a country is better off in autarky than in free and costless trade, if the productivity of its trading partner is low.

Suggested Citation

  • Morgan, John & Tumlinson, Justin & Vardy, Felix, 0. "When autarky trumps free and costless trade," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:6187
    as

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    File URL: http://econtheory.org/ojs/index.php/te/article/viewForthcomingFile/6187/44245/1
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    More about this item

    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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