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

Soo, Kwok Tong (2014) The gains from trade in intermediate goods:a Ricardo-Sraffa-Samuelson model. Working Paper. Lancaster University, Department of Economics, Lancaster.

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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. Allowing for decreasing trade and coordination costs results in an endogenous change in the structure of production towards a more fragmented structure, with corresponding implications for trade patterns.

Item Type:
Monograph (Working Paper)
Subjects:
ID Code:
70590
Deposited By:
Deposited On:
29 Aug 2014 10:21
Refereed?:
No
Published?:
Published
Last Modified:
11 Jul 2020 02:44