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A Country's Maximal Gains from Trade and Conflicting National Interests

Author

Listed:
  • Baumol, W.J.
  • Gomory, R.E.

Abstract

This paper shows that there are gains from trade that a country can capture from a partly developed trading partner that strongly exceed the gains it can obtain by trading with a fully developed one. We will also show that these gains are beneficial to one country only, they always come at the expense of the trading partner. We will also discuss more generally the circumstances under which improvements in productivity in a trading partner are beneficial to the home country.

Suggested Citation

  • Baumol, W.J. & Gomory, R.E., 1998. "A Country's Maximal Gains from Trade and Conflicting National Interests," Working Papers 98-22, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:98-22
    as

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    More about this item

    Keywords

    TRADE ; MODELS ; ECONOMIC EQUILIBRIUM;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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