Production possibilities and trade in a one-primary factor economy with public infrastructure

Makoto Tawada () and Akihiko Yanase ()
Additional contact information
Makoto Tawada: Aichi Gakuin University

Asia-Pacific Journal of Regional Science, 2021, vol. 5, issue 1, No 9, 169-189

Abstract: Abstract In this paper, we consider a Ricardian type of economy with public infrastructure, which is of “creation of atmosphere” type or “unpaid factor” type. We show that, although the production possibility frontier is convex in the creation of atmosphere type of infrastructure but is concave in the unpaid factor type, the optimal supply of public infrastructure increases according to an increase in the good that is more heavily dependent on the infrastructure along the production possibility frontier for both types. Subsequently, we showed that a country with larger labor endowment likely exports the good more heavily dependent on public infrastructure in the creation of atmosphere case, while that country likely exports the other good in the unpaid factor case.

Keywords: Public infrastructure; One primary factor model; Patterns of trade; Gains from trade (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s41685-020-00162-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:apjors:v:5:y:2021:i:1:d:10.1007_s41685-020-00162-8

Ordering information: This journal article can be ordered from
https://www.springer ... cience/journal/41685

DOI: 10.1007/s41685-020-00162-8

Access Statistics for this article

Asia-Pacific Journal of Regional Science is currently edited by Yoshiro Higano

More articles in Asia-Pacific Journal of Regional Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().