The paper surveys the international trade literature on intraindustrial and interindustrial production externalities. It places particular emphasis upon the literature on variable returns to scale (VRS) developed along the Kemp line that the externalities are output-generated, and the economies...

This paper analyzes the implications of three types of technical progress on outputs in a variable returns-to-scale framework. It is shown that Hicks-ne utral technical improvement is ultra-biased in production regardless of the direction and severity of the returns to scale. The output eff ect...

This paper analyzes the effects of a tariff on the import demand, the terms of trade, and the domesti c price ratio in a large-country framework incorporating variable ret urns to scale. It is shown that an improvement in the terms of trade for a given tariff may dampen the demand for imports,...