Marjit, Sugata (2012): Trade Between Similar Countries: The Role of Credit Market Imperfection.
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We build up a simple Ricardian trade model with imperfection in the market for credit which affects the pattern of production. Workers/entrepreneurs are endowed with different levels “capital” and need to borrow to produce the credit intensive good. We argue that in such a framework identical countries will gain from trade without the assumption of comparative advantage.
|Item Type:||MPRA Paper|
|Original Title:||Trade Between Similar Countries: The Role of Credit Market Imperfection|
|English Title:||Trade Between Similar Countries: The Role of Credit Market Imperfection|
|Keywords:||Trade, Credit Market, Gains from Trade|
|Subjects:||F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade|
|Depositing User:||sugata marjit|
|Date Deposited:||26. Oct 2012 09:24|
|Last Modified:||13. Feb 2013 13:09|
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