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A Country's Maximal Gains from Trade and Conflicting National Interests

William Baumol () and R.E. Gomory

Working Papers from C.V. Starr Center for Applied Economics, New York University

Abstract: This paper shows that there are gains from trade that a country can capture from a partly developed trading partner that strongly exceed the gains it can obtain by trading with a fully developed one. We will also show that these gains are beneficial to one country only, they always come at the expense of the trading partner. We will also discuss more generally the circumstances under which improvements in productivity in a trading partner are beneficial to the home country.

Keywords: TRADE; MODELS; ECONOMIC EQUILIBRIUM (search for similar items in EconPapers)
JEL-codes: F11 (search for similar items in EconPapers)
Pages: 45 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:cvs:starer:98-22

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