Journal of Industry, Competition and Trade

, Volume 18, Issue 3, pp 295–302 | Cite as

The Cournot-Ricardo Solution under Domestic Free Movement of Labour

  • Alexandra M. EspinosaEmail author


This paper analyses the properties of the Cournot-Ricardo solution if workers have incentives to move from low to high profit industries. By construction, these movements contribute to the improvement of the competitiveness of countries with free movement of labour, due to the increase in size of industries with a comparative advantage. However, in general, it is not sufficient to guarantee convergence to the Ricardo-Mill solution. In conclusion, under the inter-industry movement of labour, economies are more competitive, but specialisation might not coincide with that predicted by the Ricardo-Mill model.


Ricardo-Mill Ricardo-Cournot Intra-industry Labour mobility 

JEL Classification

C62 F11 F22 J61 



We would like to thank Silvia González for the valuable comments on the previous draughts. This research was supported by the Escuela Politécnica Nacional in Ecuador, research projects PIS-14-01 and PIS-16-18.


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Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  1. 1.Department of MathematicsEscuela Politécnica NacionalQuitoEcuador

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