Template-Type: ReDIF-Paper 1.0
Author-Name: Kwok Tong Soo
Author-Name-First: Kwok Tong
Author-Name-Last: Soo
Title: The gains from external scale economies and comparative advantage
Abstract: This paper develops a many-good, many-country model of international trade
which combines comparative advantage and external scale economies. It is shown
that the gains from external scale economies outweigh those from comparative
advantage as the number of goods increases. Small countries gain more than large
countries from trade, because large countries are more similar to the rest of the
world than small countries. Small countries are also more specialised in
production than large countries, despite the presence of external scale economies.
Creation-Date: 2013
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/External_Scale_Economies.pdf
File-Format: application/pdf
Number: 33867662
Classification-JEL:
Keywords: External scale economies, Comparative advantage, Gains from trade
Handle: RePEc:lan:wpaper:33867662