Increasing returns and international trade: A new approach

Murray Kemp and Koji Shimomura

No 333, Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy"

Abstract: We develop a model of international trade with increasing returns to scale by taking into account the possibility of cooperation among agents in an egalitarian economy. It is shown that each country gains from trade in a trading world in which there are arbitrary numbers of increasing-returns-to-scale goods, constant-returns-to-scale goods, factors of production, and countries.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kondp2:333

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