Baldone, Salvatore; Sdogati, Fabio; Tajoli, Lucia - In: The World Economy 30 (2007) 11, pp. 1726-1769
In traditional trade models, whether based on technological differences or on relative factor endowments, merchandise composition and directions of trade are derived from closed-economy conditions. But nowadays one of the basic assumptions of traditional trade models, i.e. that production...