Abstract
Much of the recent literature on scale economies has been motivated by the large volume of trade among the industrialized countries relative to trade. This paper presents theoretical and empirical analyses of two alternative hypotheses, one based on differences in North versus South GNP and one based on higher protection levels in the South. Counter-factual experiments using a numerical general-equilibrium model support the hypotheses that North-South trade is relatively small because the South is poor and highly protected. Copyright 1990 by Royal Economic Society.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
