A Decomposition of Ricardian Trade Gains under External Economies of Scale

Toru Kikuchi and Ngo Long

No 1001, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: Although the one-factor Ricardian trade model with external economies of scale plays a significant role for the understanding of important trade issues under increasing returns, it lacks a compelling graphical representation. We propose a convincing graphical exposition that uses both the PPF and a labor market graph.

Keywords: Trade Gains; Ricardian Trade Model; External Economies of Scale; Graph of the Labor Market (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Pages: 10pages
Date: 2010-03
New Economics Papers: this item is included in nep-int
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