On Nations’ Size and Transportation Costs

Yochanan Shachmurove, Uriel Spiegel

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

This paper develops a noncooperative Nash model in which a closed border is opened to trade between countries that differ in size and transportation costs. the paper suggests an explanation as to why economists have not convinced policymakers to lift all barriers to free trade. the questions we pose are: Who will gain as a result of opening the borders? Is free trade beneficial to the two parties involved? Do they both share equally in the fruits of free trade? Which country, large or small, benefits most? It is shown that free trade is not beneficial to both countries.

Original languageEnglish
Pages (from-to)235-243
Number of pages9
JournalReview of International Economics
Volume3
Issue number2
DOIs
StatePublished - Jun 1995

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