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The gains from external scale economies and comparative advantage

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  • Kwok Tong Soo

    (Lancaster University)

Abstract

This note develops a model of inter-personal trade which combines comparative advantage and external scale economies. It is shown that the gains from external scale economies outweigh those from comparative advantage as the population size increases.

Suggested Citation

  • Kwok Tong Soo, 2014. "The gains from external scale economies and comparative advantage," Economics Bulletin, AccessEcon, vol. 34(1), pages 84-88.
    • Handle: RePEc:ebl:ecbull:eb-13-00742
    as

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    References listed on IDEAS

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    2. Ruffin, Roy J., 2009. "The gains from specialization and population size," Economics Letters, Elsevier, vol. 105(1), pages 76-77, October.
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    7. Gene M. Grossman & Esteban Rossi-Hansberg, 2010. "External Economies and International Trade Redux," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 829-858.
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    More about this item

    Keywords

    External scale economies; comparative advantage; gains from trade;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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