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The Greater the Differences, the Greater the Gains?

In: THE FLOATING WORLD Issues in International Trade Theory

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  • Wilfred J. Ethier

Abstract

This paper addresses the fundamental question of whether, in a comparative-advantage context, the gains from trade will be greater when the differences between trading countries are greater. Such a presumption is established. The paper then discusses circumstances that could cause the presumption to fail.

Suggested Citation

  • Wilfred J. Ethier, 2014. "The Greater the Differences, the Greater the Gains?," World Scientific Book Chapters, in: THE FLOATING WORLD Issues in International Trade Theory, chapter 20, pages 413-421, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814590327_0020
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