Increasing Returns and International Trade

Authors: Kemp M.C.1; Shimomura K.1

Source: Review of International Economics, Volume 8, Number 4, November 2000 , pp. 614-618(5)

Publisher: Blackwell Publishing

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Abstract:

The paper develops a model of international trade with increasing returns toscale by taking into account the possibility of cooperation among agents in an egalitarian economy. It is shown that each country gains from trade in a trading world in which there are arbitrary numbers of increasing-returns-to-scale goods, constant-returns-to-scale goods, factors of production, and countries.

Document Type: Original article

DOI: 10.1111/1467-9396.00245

Affiliations: 1: Research Institute for Economics and Business Administration, Kobe University

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