TEL> Vol.2 No.2, May 2012

Note on a Continuum Multi-Country and International Trade

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ABSTRACT

We provide an analytical solution for the continuum multi-country two-sector Ricardian model of Yanagawa (1996) [1], and obtain additional results that are not observed in the standard two-country two-good Ricardian model. Increases in productivity in each sector results in an increase in the number of countries producing high technology goods and a de- crease in the number of countries producing low technology goods.

Cite this paper

K. Kamei, "Note on a Continuum Multi-Country and International Trade," Theoretical Economics Letters, Vol. 2 No. 2, 2012, pp. 221-225. doi: 10.4236/tel.2012.22040.

References

[1] N. Yanagawa, “Economic Development in a World with Many Countries,” Journal of Development Economics, Vol. 49, No. 2, 1996, pp. 271-288. doi:10.1016/0304-3878(95)00062-3
[2] G. Becker, “A Note on Multi-Country Trade,” American Economic Review, Vol. 42, No. 4, 1952, pp. 558-568.
[3] R. Dornbusch, S. Fischer and P. Samuelson, “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods,” American Economic Review, Vol. 67, No. 5, 1977, pp. 823-839.
[4] H. Fadinger and P. Fleiss, “Trade and Sectoral Productivity,” Economic Journal, Vol. 121, No. 6, 2011, pp. 958- 989.

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