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External Economies

In: Developments of International Trade Theory

Author

Listed:
  • Takashi Negishi

    (The Japan Academy)

  • Takashi Negishi

    (The University of Tokyo)

Abstract

As we saw in Chap. 3, already in 1776 Adam Smith pointed out the importance of increasing returns to scale for international trade in his The Wealth of Nations. It is rather recent, however, that the role of increasing returns has begun to be discussed seriously in the modern theory of international trade. Since the assumption of perfect competition, which has been widely made, is not consistent with the so-called internal economies, Marshallian external economies have been considered by, e.g., Mathews (1949), Melvin (1969), and Kemp & Negishi (1970).

Suggested Citation

  • Takashi Negishi & Takashi Negishi, 2014. "External Economies," Advances in Japanese Business and Economics, in: Developments of International Trade Theory, edition 2, chapter 0, pages 127-137, Springer.
    • Handle: RePEc:spr:advchp:978-4-431-54433-3_17
    DOI: 10.1007/978-4-431-54433-3_17
    as

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