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Journal of Economics

, Volume 60, Issue 1, pp 29–54 | Cite as

Endogenous vs. exogenous comparative advantage and economies of specialization vs. economies of scale

  • Xiaokai Yang
Articles

Abstract

This paper draws the distinctions between the concepts of endogenous and exogenous comparative advantages and between the concepts of economies of specialization and scale. A comparison between the equilibrium model endogenizing the degree of specialization and endogenous comparative advantages, neoclassical trade model with exogenous comparative advantages, and an extended Dixit-Stiglitz model with a tradeoff between economies of scale and transaction costs is used to explore the equilibrium implications of the distinctions.

Keywords

Economic Theory Transaction Cost International Economic Equilibrium Model Comparative Advantage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag 1994

Authors and Affiliations

  • Xiaokai Yang
    • 1
  1. 1.Department of EconomicsMonash UniversityClaytonAustralia

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