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.
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Yang, X. Endogenous vs. exogenous comparative advantage and economies of specialization vs. economies of scale. Zeitschr. f. Nationalökonomie 60, 29–54 (1994). https://doi.org/10.1007/BF01228024
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DOI: https://doi.org/10.1007/BF01228024