Can market size outweigh adverse comparative advantage?
Article
Gottschalk, S. 2002. Can market size outweigh adverse comparative advantage? The Journal of International Trade & Economic Development. 11 (1), pp. 43-61. https://doi.org/10.1080/09638190110093154
Type | Article |
---|---|
Title | Can market size outweigh adverse comparative advantage? |
Authors | Gottschalk, S. |
Abstract | This paper investigates the roles of comparative advantage and market size in the international location of manufacturing production. Building on the conventional Helpman and Krugman (1985) general equilibrium framework, our analysis extends the present literature by incorporating both effects in the same model, while allowing trade costs to vary almost continuously from autarky to free trade. The main result of our exercise is that market size effects offset comparative advantage if countries have similar factor proportions. A large country with a slight comparative disadvantage in manufacturing production may thus be a net exporter of manufactures. A small country with the same comparative disadvantage would be a net importer of manufactures. |
Publisher | Taylor & Francis (Routledge) |
Journal | The Journal of International Trade & Economic Development |
ISSN | 0963-8199 |
Electronic | 1469-9559 |
Publication dates | |
01 Jan 2002 | |
Online | 09 Dec 2010 |
Publication process dates | |
Deposited | 15 Feb 2021 |
Accepted | 01 Oct 2002 |
Output status | Published |
Digital Object Identifier (DOI) | https://doi.org/10.1080/09638190110093154 |
Language | English |
https://repository.mdx.ac.uk/item/8942z
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