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Trade and Gains from Trade between Profit-Maximizing and Labour-Managed Countries with Imperfect Competition

Author

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  • Makoto Tawada
  • Shigemi Yabuuchi

Abstract

It is known that, in the Heckscher-Ohlin type of general equilibrium trade models with one commodity produced by Cournot Oligopolists in the world market, the smaller country exports the imperfectly competitive commodity and gains from trade but the larger country may lose from trade. The present paper examines these results under the assumption that all firms of one country are labour-managed and the countries are the same in size. Then we obtain the result that the profit-maximizing country exports the imperfectly competitive commodity and gains from trade but the labour-managed country may lose from trade.

Suggested Citation

  • Makoto Tawada & Shigemi Yabuuchi, 1995. "Trade and Gains from Trade between Profit-Maximizing and Labour-Managed Countries with Imperfect Competition," CESifo Working Paper Series 97, CESifo.
    • Handle: RePEc:ces:ceswps:_97
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