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Journal of Political Economy Vol. 100 No. 1 1992

International Trade with Lumpy Countries

Paul N. Courant1,2; Alan V. Deardorff1,2

1 Purdue University West Lafayette · 2 University of Michigan–Ann Arbor

Abstract

This paper explores the implications for the pattern of international trade of differences among regions within countries--what we call "lumpiness." If factors of production are sufficiently unevenly distributed across regions, then the pattern of trade of the country as a whole may depart from what it would have been had factors been evenly distributed. Thus lumpiness in the geographical distribution of factors can be a determinant of trade. We show in particular that if other determinants of trade are absent, then a country will tend to export the good that intensively uses its lumpier (i.e., more unevenly distributed) factor.

DOI
10.1086/261813
Volume
100
Issue
1
Pages
198-210
Language
en
Sources
openalex crossref

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