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The gains from trade revisited

Soo, Kwok Tong (2011) The gains from trade revisited. International Review of Economics and Finance, 20 (2). pp. 193-201. ISSN 1059-0560

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    Abstract

    This paper revisits the issue of whether countries gain more from trading with countries that are similar to themselves, or with countries that are different. A model based on relative endowment and technological differences across countries is developed. The main result is that a country may experience a region of increasing gains from trade as its trading partner becomes more similar to itself in terms of relative endowments. The model also predicts that for countries with sufficiently similar relative endowments, both factors of production may experience gains from trade.

    Item Type: Article
    Journal or Publication Title: International Review of Economics and Finance
    Uncontrolled Keywords: Gains from trade ; Neoclassical trade model
    Subjects: UNSPECIFIED
    Departments: Lancaster University Management School > Economics
    ID Code: 52090
    Deposited By: ep_importer_pure
    Deposited On: 16 Dec 2011 16:13
    Refereed?: Yes
    Published?: Published
    Last Modified: 09 Apr 2014 22:58
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/52090

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