This paper derives sufficient conditions under which the Law of Comparative Advantage and the General Law of Comparative Advantage are true when the preferences of the trading countries may not be represented by "well-behaved" social utility functions. It shows that in the neoclassical framework...

This paper analyzes the relationship between economic growth, industrialization, and international trade in a two-sector endogenous growth model. With learning-by-doing, the economy grows perpetually along a balanced growth path, with manufacturing's relative price declining continuously. Under...

This paper examines how two geographically separated ports compete for a market consisting of manufacturing firms located between them. There is a service firm in each port, and these two firms, taking the infrastructure provided by their governments as given, compete in prices. The governments...