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Erscheinungsjahr: 
2005
Schriftenreihe/Nr.: 
Thünen-Series of Applied Economic Theory - Working Paper No. 53
Verlag: 
Universität Rostock, Institut für Volkswirtschaftslehre, Rostock
Zusammenfassung: 
This paper looks at a model in which two countries trade agricultural and manufactured commodities. The manufactured-goods sector produces with increasing returns to scale under conditions of monopolistic competition. It is shown that an increase in land endowment (or an increase in agricultural productivity) can have negative welfare implications for both countries. This outcome can result under three different scenarios: asymmetries across countries, i.e. a North-South model, a neoclassical labor market in the home country's instead of a Lewisian market, and alternative utility functions.
Schlagwörter: 
international trade
labor surplus economy
land expansion
monopolistic competition
North-South model
JEL: 
F12
J61
O15
O18
Dokumentart: 
Working Paper

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