Theory of Comparative Advantage: Do Transportation Costs Matter?

Jacek Cukrowski, Manfred M. Fischer

    Publikation: Working/Discussion PaperWU Working Paper

    37 Downloads (Pure)


    The paper presents a formal analysis which incorporates returns to transportation into a Ricardian framework to predict trade patterns. The important point to be gained from this analysis is that increasing returns to transportation, coupled with appropriate distances between trading partners can be shown to reverse Ricardian predictions even when there are no international differences in tastes, technology, or factor endowments. Additional gains from trade may emerge from reductions in aggregate delivery costs owing to scale economies. (authors' abstract)
    HerausgeberWU Vienna University of Economics and Business
    PublikationsstatusVeröffentlicht - 2000


    ReiheDiscussion Papers of the Institute for Economic Geography and GIScience

    WU Working Paper Reihe

    • Discussion Papers of the Institute for Economic Geography and GIScience

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