Nobuhito Suga

International Trade with a Public Intermediate Good and the Gains from Trade

This paper presents a one-primary factor, two-consumer good, and two-country model of international trade where each countrys government supplies a country-specific public intermediate good so as to attain efficient production. By introducing the Marshallian adjustment process, it is demonstrated that the country with larger factor endowment exports the good whose productivity is more sensitive to the public intermediate good. Our normative analysis of free trade shows the following results. First, at least one country gains from trade. Secondly, if a country incompletely specializes in the trading equilibrium, the country necessarily loses from trade. Copyright

An Analysis of Transboundary Pollution and the Gains from Trade: Reconsideration

This paper investigates the effects of transboundary pollution on trade and welfare in a two-country, two-good, one-factor model in which pollution is treated as a negative cross-industry externality. It is shown that trade may improve countries natural environment and consequently raises the countries welfare if a comparative advantage in a pollution-producing good is held by a country that greatly surpasses the other in pollution abatement technology. This result has not been obtained from existing models of this type. Copyright 2007 Blackwell Publishing Ltd

Chapter 13 A Two-Country Model of International Trade with Increasing Returns and Oligopoly

Purpose – This chapter aims to examine trade patterns and gains from trade in a two-country general equilibrium model of increasing returns and oligopoly. n nApproach – A general equilibrium model of increasing returns and oligopoly. n nFindings – The determination of patterns of specialization and trade and gains from trade highly depends on the interaction between the degree of increasing returns and market power as well as the cross-country difference in factor endowments. n nOriginality – Unlike the existing literature, we endogenize the determination of specialization by using an allocation curve approach by Ethier (1982). To our knowledge, there is no comparable study that incorporates Ethiers (1982) approach to oligopolistic models of international trade.