Internal returns to scale as a source of comparative advantage: The evidence
Abstract
During the past 15 years many trade theorists have incorporated scale economies and imperfect competition into their models. This abandonment of perfect markets has profoundly changed the way that economists think about the determinants of trade flows and the effect of trade policies on performance. Below I selectively review the empirical evidence on both issues, focusing on the role of increasing internal returns to scale (IIRS).1 To conserve space, I refer the reader to the working-paper version of this document (Tybout, 1993) for more extensive references.
- Sources
- openalex