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<br/>which combines comparative advantage and external scale economies. It is shown<br/>that the gains from external scale economies outweigh those from comparative<br/>advantage as the number of goods increases. Small countries gain more than large<br/>countries from trade, because large countries are more similar to the rest of the<br/>world than small countries. Small countries are also more specialised in<br/>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