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The Gains From International Trade And International Aid In The Presence Of Public Goods

Author

Listed:
  • MURRAY C. KEMP

    (University of New South Wales, Sydney, NSW 2032, Australia)

  • BINH TRAN-NAM

    (School of Taxation and Business Law, University of New South Wales, Sydney, NSW 2032, Australia)

Abstract

It is well known that if the autarkic and free-trade equilibria are perfectly competitive with market distortions limited to non-negative taxes on imports and exports then free trade is potentially (after country-specific lumpsum compensatory transfers) beneficial for each trading country. It can now be shown that, even in a context of public goods of any kind, free trade (after country-nonspecific lumpsum compensatory transfers) is potentially beneficial for each trading country, whether or not the countries also extend aid in public goods to each other.

Suggested Citation

  • Murray C. Kemp & Binh Tran-Nam, 2012. "The Gains From International Trade And International Aid In The Presence Of Public Goods," Global Journal of Economics (GJE), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-9.
    • Handle: RePEc:wsi:gjexxx:v:01:y:2012:i:01:n:s2251361212500085
    DOI: 10.1142/S2251361212500085
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    References listed on IDEAS

    as
    1. Knut Wicksell, 1958. "A New Principle of Just Taxation," International Economic Association Series, in: Richard A. Musgrave & Alan T. Peacock (ed.), Classics in the Theory of Public Finance, pages 72-118, Palgrave Macmillan.
    2. Kemp, Murray C. & Abe, Kenzo, 1994. "The transfer problem in the context of public goods," Economics Letters, Elsevier, vol. 45(2), pages 223-226, June.
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    Cited by:

    1. Tran-Nam, Binh, 2016. "A critical review of the normative theory of international trade," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 6(1), pages 25-46.

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    More about this item

    Keywords

    Gains from trade; gains from aid; public goods; public goods association; F11; F13; H41;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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