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AA00260492-19890002-0005.pdf
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Download
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:622.1 KB
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| Last updated |
:Dec 27, 2009 |
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Total downloads since Dec 27, 2009 : 1156
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| Title |
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URBAN UNEMPLOYMENT, ECONOMIES OF SCALE AND THE THEORY OF CUSTOMS UNIONS
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BELADI, Hamid
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University of Dayton
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Keio Economic Society, Keio University
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1989
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Keio economic studies
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26
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2
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1989
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5
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15
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| Abstract |
The purpose of this paper is to re-examine the welfare implications of customs unions in a mobile capital version of the H-T model in the presence of variable returns to scale. In this context, among other things, we show that trade creation II is welfare-improving if the manufacturing sector is characterized by decreasing or constant returns to scale. However, the welfare effect of trade creation I is ambiguous if the urban sector is characterized by increasing returns to scale.
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