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The gains from trade in intermediate goods : A Ricardo-Sraffa-Samuelson model

Soo, Kwok Tong (2018) The gains from trade in intermediate goods : A Ricardo-Sraffa-Samuelson model. International Review of Economics and Finance, 54. pp. 244-261. ISSN 1059-0560

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    Abstract

    This paper develops a model of intermediate and final goods trade based on comparative advantage. Firms endogenously decide whether to produce a final good directly using labour, or indirectly using both labour and intermediate inputs. It is shown that the gains from trade in intermediate and final goods exceeds that from trade in final goods alone. Falling trade and coordination costs result in an endogenous change in the structure of production towards a more fragmented structure, with corresponding implications for trade patterns.

    Item Type: Journal Article
    Journal or Publication Title: International Review of Economics and Finance
    Additional Information: This is the author’s version of a work that was accepted for publication in International Review of Economics & Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Review of Economics & Finance, 54, 2018 DOI: 10.1016/j.iref.2017.08.013
    Uncontrolled Keywords: Intermediates trade ; Comparative advantage ; Structure of production ; F11
    Subjects:
    Departments: Lancaster University Management School > Economics
    ID Code: 87591
    Deposited By: ep_importer_pure
    Deposited On: 05 Sep 2017 09:10
    Refereed?: Yes
    Published?: Published
    Last Modified: 11 Apr 2018 03:55
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/87591

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