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The Greater the Differences, the Greater the Gains?, Second Version

Author

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  • Wilfred J. Ethier

    () (Department of Economics, University of Pennsylvania)

Abstract

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.

Suggested Citation

  • Wilfred J. Ethier, 2007. "The Greater the Differences, the Greater the Gains?, Second Version," PIER Working Paper Archive 08-009, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 26 Feb 2008.
  • Handle: RePEc:pen:papers:08-009
    as

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    File URL: https://economics.sas.upenn.edu/sites/default/files/filevault/working-papers/08-009.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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 509-522, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    trade gains; international differences;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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