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THE GAINS FROM INTERNATIONAL TRADE AND INTERNATIONAL AID IN THE PRESENCE OF PUBLIC GOODS

Murray Kemp and Binh Tran-Nam ()
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Binh Tran-Nam: School of Taxation and Business Law, University of New South Wales, Sydney, NSW 2032, Australia

Global Journal of Economics (GJE), 2012, vol. 01, issue 01, 1-9

Abstract: It is well known that if the autarkic and free-trade equilibria are perfectly competitive with market distortions limited to non-negative taxes on imports and exports then free trade is potentially (after country-specific lumpsum compensatory transfers) beneficial for each trading country. It can now be shown that, even in a context of public goods of any kind, free trade (after country-nonspecific lumpsum compensatory transfers) is potentially beneficial for each trading country, whether or not the countries also extend aid in public goods to each other.

Keywords: Gains from trade; gains from aid; public goods; public goods association; F11; F13; H41 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1142/S2251361212500085

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