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AA00260492-20180000-0073.pdf
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Title |
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Partial specialization with constant cost comparative advantage
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Thompson, Henry
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Department of Economics, Auburn University
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Keio Economic Society, Keio University
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2018
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Keio economic studies
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54
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2018
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73
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80
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Abstract |
In the model of constant cost production and trade, each country completely specializes to export its own comparative advantage good. The present paper extends this theory to allow partial specialization motivated by trade with a country too small to support complete specialization. A partially specialized large country gains from trade at international prices. With three or more countries and goods, partial specialization introduces the potential of multiple exports. The pattern of trade becomes much more realistic introducing partial specialization and trade at international prices.
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