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Appendix to Chapter 17

Giancarlo Gandolfo

Chapter Chapter 31 in International Trade Theory and Policy, 2014, pp 617-628 from Springer

Abstract: Abstract The world consists of two countries (or regions: henceforth we shall use ‘region’ and ‘country’ interchangeably), North and South, assumed to be identical in technology, endowments, and preferences. Both countries produce two kinds of commodities: an agricultural good (produced under constant returns to scale with labour as the sole input) and a variety of manufacturing goods (produced under increasing returns to scale using labour and intermediate goods). Manufacturing goods can be used both as final goods by consumers and as intermediate goods in the manufacturing sector.

Keywords: Equilibrium Point; Wage Rate; Transportation Cost; Intermediate Good; Symmetric Equilibrium (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-3-642-37314-5_31

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