The Greater the Differences, the Greater the Gains?, Second Version
This paper addresses the fundamental question of whether, in a comparative-advantage context, the gains from trade will be greater when the differences between trading countries are greater. Such a presumption is established. The paper then discusses circumstances that could cause the presumption to fail.
|Date of creation:||30 Nov 2007|
|Date of revision:||26 Feb 2008|
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Web page: http://economics.sas.upenn.edu/pier
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- Grandmont, J. M. & McFadden, D., 1972. "A technical note on classical gains from trade," Journal of International Economics, Elsevier, vol. 2(2), pages 109-125, May.
- Kemp, Murray C & Wan, Henry Y, Jr, 1972. "The Gains from Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 509-22, October.
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