@article{jfe2018614,
author={Chu-Ping, Lo},
title={Scale Effect, International Outsourcing, and Welfare},
journal={Journal of Finance and Economics},
volume={6},
number={1},
pages={26--31},
year={2018},
url={http://pubs.sciepub.com/jfe/6/1/4},
issn={2328-7276},
abstract={We have presented a simple model to show that trade elasticity is determined by not only consumers¡¯ preferences, but also producers¡¯ comparative advantages in a world where trade is driven by both consumers¡¯ love-of-variety and producers¡¯ comparative advantages. In this model, scale matters in trade elasticity, with smaller countries tending to exhibit a larger one. In addition to tradable intermediate goods, this model also shows that scale is a key factor influencing gains from trade. As a result, smaller countries that are engaged in more international outsourcing activities typically benefit with relatively greater gains from trade after trade liberalization.},
doi={10.12691/jfe-6-1-4}
publisher={Science and Education Publishing}
}