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Competitive versus comparative advantage

Abstract:

I explore the interactions between comparative, competitive and absolute advantage in a two-country model of oligopoly in general equilibrium. Comparative advantage always determines the direction of trade, but both competitive and absolute advantage affect resource allocation, trade patterns and trade volumes. Competitive advantage in the sense of more home firms drives foreign firms out of marginal sectors but also makes some marginal home sectors uncompetitive. Absolute advantage in the se...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1111/1467-9701.00532

Authors


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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Industrial Economics
Oxford college:
Merton College
Role:
Author
Publisher:
Blackwell Publishing Publisher's website
Journal:
World Economy Journal website
Volume:
26
Issue:
4
Pages:
457-470
Publication date:
2003-04-01
DOI:
EISSN:
1467-9701
ISSN:
0378-5920
Language:
English
Subjects:
UUID:
uuid:29fba862-dc38-4235-aa14-8c712141c792
Local pid:
ora:2127
Deposit date:
2008-06-27

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