IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Output Set, Convexity, Specialization And Trade In The Absence Of Comparative Advantages

Listed author(s):


    (School of Humanities and Social Sciences, Nanyang Technological University, Nanyang Avenue, 639798, Singapore)

Registered author(s):

    Classical trade theory is based on exogenous comparative advantage. The existence of equilibrium is derived under the assumption that the output sets are (weakly) convex. In general, however, in the presence of transaction costs or in the case of production techniques with increasing returns to scale, this convexity requirement is no longer satisfied, and the comparative advantage may also disappear.Pioneered by Arrow, Ng and Yang, some researches have been done on specialization and trade in the absence of comparative advantages, and the basic assumption is that the agents have production techniques with increasing returns to scale.In this paper it is pointed out that, with more than one factor of production, increasing returns to scale is no longer sufficient for promoting specialization and trade. Based on the property of the output set and the PPF, the author proposes some new criteria as sufficient conditions for the promotion of specialization and trade.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Division of Labor & Transaction Costs.

    Volume (Year): 02 (2006)
    Issue (Month): 01 ()
    Pages: 15-35

    in new window

    Handle: RePEc:wsi:dltcxx:v:02:y:2006:i:01:p:15-35
    Contact details of provider: Web page:

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wsi:dltcxx:v:02:y:2006:i:01:p:15-35. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.