Constructing a two-good (competitive and imperfectly-competitive goods), two-primary factor (capital and labor) and two-country model of international trade where the imperfectly-competitive sector is subject to increasing returns to scale, we establish an oligopolistic version of the...

Constructing a two-good (competitive and imperfectly-competitive goods), two-primary factor (capital and labor) and two-country model of international trade where the imperfectly-competitive sector is subject to increasing returns to scale, we establish an oligopolistic version of the...

Constructing a two-country, two-good, two-factor model of international trade under quasi-linear utility functions, we obtain a Modified Heckscher-Ohlin (MHO) Theorem that relates the trade pattern to the international distribution of factor endowments. We also show that the MHO Theorem survives...

Constructing a two-good (a competitive and monopolized goods), two-primary factor (capital and labor) and two-country model of international trade where the monopolized sector is subject to increasing returns to scale, we establish an oligopolistic version of the Heckscher-Ohlin Theorem.

PTAs are generally negotiated without any tariff concessions or transfers to non-member countries. Can such a PTA benefit the neighbors' welfare? In a two-good competitive equilibrium model in the absence of an entrepôt, a PTA without concessions to the outside will hurt the outsider's welfare...

We develop a model of international trade with increasing returns to scale by taking into account the possibility of cooperation among agents in an egalitarian economy. It is shown that each country gains from trade in a trading world in which there are arbitrary numbers of...

In two-sector infinite-horizon trade models with factor–price-equalization, convergence of aggregate capital-labor ratios and incomes does not occur because the Euler equations imply equal growth rate of consumption in all economies. In a two-country dynamic specific factors model, we show...