Factor Endowments and Increasing Returns to Scale as Upstream Theories of Comparative Cost Advantage are Inadequate for Explaining International Trade

2008 ◽  
Author(s):  
Oumar Bouare
Keyword(s):  
International Trade ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Cost Advantage ◽  
Increasing Returns To Scale ◽  
Factor Endowments ◽  
Comparative Cost ◽  
Comparative Cost Advantage

scholarly journals Increasing Returns and All That: A View from Trade

2002 ◽  
Vol 92 (1) ◽  
pp. 93-119 ◽  
Author(s):  
Werner Antweiler ◽  
Daniel Trefler
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Returns To Scale ◽  
Scale Economies ◽  
Trade Flows ◽  
Increasing Returns ◽  
Large Database ◽  
Trade Data ◽  
Increasing Returns To Scale ◽  
Factor Endowments

Do scale economies help to explain international trade flows? Using a large database on output, trade flows, and factor endowments, we find that allowing for the presence of increasing returns to scale in production significantly increases our ability to predict international trade flows. In particular, using trade data, we find that a third of all goods-producing industries are characterized by increasing returns to scale. Thus, scale economies are a quantifiable and important source of comparative advantage.

scholarly journals Returns to Scale for EU Regions – evidence from the spatial panel model

2017 ◽  
Vol 3 (329) ◽  
Author(s):  
Alicja Anna Olejnik
Keyword(s):  
Fixed Effects ◽  
Regional Growth ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
Spatial Panel ◽  
Panel Model ◽  
Eu Regions ◽  
Spatial Panel Model ◽  
The Eu

Recent findings emphasise the importance of localised returns to scale for the regional growth as well as for the agglomeration processes. However, it is still not well established whether returns to scale are constant or increasing, and to what extent. Therefore, in this study we apply specification which describes the productivity growth with the growth of output through the Verdoorn’s law. This study aims to provide some new estimates of the degree of returns to scale for EU regions. Our findings show that the hypothesis of increasing returns to scale is still valid in today’s EU economy. To test the hypothesis, we have employed the Multidimensional Spatial Panel Durbin Model with Spatial Fixed Effects. The research is conducted for 261 regions of the EU 28. The paper concludes that increasing returns to scale in EU regions are substantial.

Network Effects

2010 ◽  
pp. 1007-1013
Author(s):  
Erik den Hartigh
Keyword(s):  
Network Effects ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
The Subject

From the 1980s, network effects attracted a lot of interest in economics and management sciences. This was mainly due to the work of Arthur (e.g., 1988, 1989, 1990). While the subject of increasing returns to scale in companies had a long tradition in economics, network effects (i.e., increasing returns in markets) had hardly been addressed.

Increasing returns to scale in the towns of early Tudor England

2020 ◽  
Vol 53 (3) ◽  
pp. 147-165
Author(s):  
Rudolf Cesaretti ◽  
José Lobo ◽  
Luis M. A. Bettencourt ◽  
Michael E. Smith
Keyword(s):  
Returns To Scale ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
Tudor England
Sign in / Sign up

Export Citation Format

Share Document