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The Greater the Differences, the Greater the Gains?

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?," Working Papers 001-08, International School of Economics at TSU, Tbilisi, Republic of Georgia, revised Mar 2008.
    • Handle: RePEc:tbs:wpaper:08-001
    as

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    File URL: http://www.iset.ge/files/001-08.pdf
    File Function: Revised version, 2008
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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)

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    Cited by:

    1. Ruffin, Roy J., 2009. "The gains from specialization and population size," Economics Letters, Elsevier, vol. 105(1), pages 76-77, October.

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    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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