External Economies

  • Takashi Negishi
  • Takashi Negishi
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 2)


As we saw in Chap. 3, already in 1776 Adam Smith pointed out the importance of increasing returns to scale for international trade in his The Wealth of Nations. It is rather recent, however, that the role of increasing returns has begun to be discussed seriously in the modern theory of international trade. Since the assumption of perfect competition, which has been widely made, is not consistent with the so-called internal economies, Marshallian external economies have been considered by, e.g., Mathews (1949), Melvin (1969), and Kemp & Negishi (1970).


Increasing Returns to Scale Gains from Trade Marshallian External Economies Sraffian View of Competition Kinked Demand Curve Exporters and Importers 


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Copyright information

© Springer Japan 2014

Authors and Affiliations

  • Takashi Negishi
    • 1
  • Takashi Negishi
    • 2
  1. 1.The Japan AcademyTokyoJapan
  2. 2.The University of TokyoTokyoJapan

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