The International Diffusion of the Fruits of Technical Progress

Murray Kemp, Yew-Kwang Ng () and Koji Shimomura

International Economic Review, 1993, vol. 34, issue 2, 381-85

Abstract: The Hicks-Ikema theorem, that a uniform expansion of a trading country's production set must benefit its trading partner if the preferences of the expanding country are homothetic, has been demonstrated under assumptions of the Lerner-Samuelson kind. It is shown here that the theorem remains valid if one of the trading partners imposes an optimal tariff, if there are produced inputs, and if factors of production are internationally mobile. Copyright 1993 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1993
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