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Some Trade Theorems with a Public Intermediate Good

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  • Lutz Altenburg

Abstract

This paper considers the implications for the Stolper-Samuelson and Rybczynski theorems of a pure public intermediate good. Necessary and sufficient conditions for the theorems to hold in their strong versions are derived. They show a close formal resemblance to those known from the model with variable returns to scale internal to industries. The dual nature of the two theorems is shown to be preserved. Lastly, sufficiency conditions for either theorem to hold are presented.

Suggested Citation

  • Lutz Altenburg, 1992. "Some Trade Theorems with a Public Intermediate Good," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 310-332, May.
    • Handle: RePEc:cje:issued:v:25:y:1992:i:2:p:310-32
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    Cited by:

    1. Pi, Jiancai & Zhou, Yu, 2014. "Foreign capital, public infrastructure, and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 195-207.
    2. Sajid Anwar, 1997. "Public consumer goods, output-generated variable returns, and labor supply," Journal of Economics, Springer, vol. 65(2), pages 201-215, June.
    3. Makoto Tawada & Nobuhito Suga & Akihiko Yanase, 2022. "Government, trade and comparative advantage, revisited," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(2), pages 1135-1165, May.
    4. Akihiko Yanase & Makoto Tawada, 2020. "Public infrastructure and trade in a dynamic two‐country model," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 447-465, May.
    5. Makoto Tawada & Akihiko Yanase, 2021. "Production possibilities and trade in a one-primary factor economy with public infrastructure," Asia-Pacific Journal of Regional Science, Springer, vol. 5(1), pages 169-189, February.
    6. Anwar, Sajid, 1998. "Size of the government, welfare and labour supply in the presence of variable returns," International Review of Economics & Finance, Elsevier, vol. 7(2), pages 201-208.

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