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:

/dk/atira/pure/subjectarea/asjc/2000

Subjects:

?? intermediates tradecomparative advantagestructure of productioneconomics, econometrics and finance(all)financeeconomics and econometricsf11discipline-based research ??

Departments:

Lancaster University Management School > Economics

ID Code:

87591

Deposited By:

ep_importer_pure

Deposited On:

05 Sep 2017 08:10

Refereed?:

Yes

Published?:

Published

Last Modified:

31 Dec 2023 00:51

URI:

https://eprints.lancs.ac.uk/id/eprint/87591