Trade Patterns and the Gains from Trade in a Chamberlinian-Ricardian Model
This paper investigates trade patterns and the gains from trade in a Chamberlinian-Ricardian model with a CES type of upper-tier utility function. It is shown that a strong tendency toward complete specialization emerges under free trade and that free trade is preferable to autarky from the viewpoint of each country’s welfare. This paper also considers the trade regime called semi-autarky, in which one sector is under free trade, while the other is closed. The analysis demonstrates that free trade does not necessarily attain higher welfare in all countries relative to semi-autarky if cross-sector substitution in consumption is elastic.
|Date of creation:||Mar 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +81 (0)11-706-3163
Fax: +81 (0)11-706-4947
Web page: http://www.econ.hokudai.ac.jp/en08/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rikard Forslid & Ian Wooton, 2003.
"Comparative Advantage and the Location of Production,"
Review of International Economics,
Wiley Blackwell, vol. 11(4), pages 588-603, 09.
- Forslid, Rikard & Wooton, Ian, 1999. "Comparative Advantage and the Location of Production," CEPR Discussion Papers 2118, C.E.P.R. Discussion Papers.
- Toru Kikuchi & Koji Shimomura & Dao-Zhi Zeng, 2006. "On the Emergence of Intra-industry Trade," Journal of Economics, Springer, vol. 87(1), pages 15-28, 01.
- Kikuchi, Toru & Shimomura, Koji, 2007. "Monopolistic competition with cross-country technological differences and international trade," Japan and the World Economy, Elsevier, vol. 19(2), pages 236-247, March.
- Venables, Anthony J, 1998.
"The International Division of Industries: Clustering and Comparative Advantage in a Multi-Industry Model,"
CEPR Discussion Papers
1961, C.E.P.R. Discussion Papers.
- Venables, Anthony J, 1999. " The International Division of Industries: Clustering and Comparative Advantage in a Multi-industry Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(4), pages 495-513, December.
- Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
- Catia Montagna, 1998.
"Efficiency Gaps, Love of Variety and International Trade,"
Dundee Discussion Papers in Economics
090, Economic Studies, University of Dundee.
- Montagna, Catia, 2001. "Efficiency Gaps, Love of Variety and International Trade," Economica, London School of Economics and Political Science, vol. 68(269), pages 27-44, February.
- Svetlana Demidova, 2008.
"Productivity Improvements And Falling Trade Costs: Boon Or Bane?,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1437-1462, November.
- Demidova, Svetlana, 2005. "Productivity Improvements and Falling Trade Costs: Boon or Bane?," Working Papers 2-05-1, Pennsylvania State University, Department of Economics.
- Toru Kikuchi & Koji Shimomura & Dao-Zhi Zeng, 2008. "On Chamberlinian-Ricardian Trade Patterns," Review of International Economics, Wiley Blackwell, vol. 16(2), pages 285-292, 05.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977.
"Monopolistic Competition and Optimum Product Diversity,"
American Economic Review,
American Economic Association, vol. 67(3), pages 297-308, June.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
- Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
When requesting a correction, please mention this item's handle: RePEc:hok:dpaper:267. 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: (Hokkaido University Library)
If references are entirely missing, you can add them using this form.