Feenstra, Robert C. - Alternative Sources of the Gains from International T ...

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Journal of Economic Perspectives—Volume 32, Number 2—Spring 2018—Pages 25–46


Alternative Sources of the Gains from
International Trade: Variety, Creative
Destruction, and Markups
Robert C. Feenstra


T
     he modern theory of international trade allows for several sources of the
     gains from trade in addition to traditional comparative advantage. We
     discuss these sources and provide estimates of the gains for the United
States and other countries. It turns out that the formula used to ...

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