Economics at your fingertips  

The gains from trade in intermediate goods: A Ricardo-Sraffa-Samuelson model

Kwok Tong Soo ()

International Review of Economics & Finance, 2018, vol. 54, issue C, 244-261

Abstract: This paper develops a model of intermediate and final goods trade based on comparative advantage. Firms endogenously decide whether to produce a final good directly using labour, or indirectly using both labour and intermediate inputs. It is shown that the gains from trade in intermediate and final goods exceeds that from trade in final goods alone. Falling trade and coordination costs result in an endogenous change in the structure of production towards a more fragmented structure, with corresponding implications for trade patterns.

Keywords: Intermediates trade; Comparative advantage; Structure of production (search for similar items in EconPapers)
JEL-codes: F11 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-08-20
Handle: RePEc:eee:reveco:v:54:y:2018:i:c:p:244-261