Trade Between Similar Countries: The Role of Credit Market Imperfection

Sugata Marjit

MPRA Paper from University Library of Munich, Germany

Abstract: We build up a simple Ricardian trade model with imperfection in the market for credit which affects the pattern of production. Workers/entrepreneurs are endowed with different levels “capital” and need to borrow to produce the credit intensive good. We argue that in such a framework identical countries will gain from trade without the assumption of comparative advantage.

Keywords: Trade; Credit Market; Gains from Trade (search for similar items in EconPapers)
JEL-codes: F11 (search for similar items in EconPapers)
Date: 2012-08
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:41935

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