Economies of Scale, Domestic Divergences, and Potential Gains from Economic Integration in Ghana and the Ivory Coast
Journal of Political Economy
1980
Economies of scale and domestic divergences offer an important scope for gains from industrial integration among developing countries. Underutilized industrial capacity, together with distorting policies and imperfections in factor markets, provides a rationale for countries to swap opportunities for industrial expansion. Through integration, Ghana and the Ivory Coast stand to achieve welfare gains of 33 and 22 percent of gross output in world prices. About two-fifths of these gains have their source in Viner's trade-creation effects, one-fifth in Corden's cost-reduction effects, and two-fifths in the newly suggested production effects.
- DOI
- 10.1086/260918
- Volume
- 88 (5)
- Pages
- 994-1008
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref