Disadvantaging Comparative Advantages: The Problem of Decreasing Returns

  • Kunibert Raffer

Abstract

The effects of increasing returns to scale have been discussed for quite some time by economists focusing on trade theory. By contrast, the case of decreasing returns has not received much attention so far. Even though this latter case was classified as posing little analytical difficulty by Jones and Neary (1984, p. 48), it is of particular interest because absolutely rational specialisation according to (static) comparative costs may finally result in immiserisation and decreased (global) output.

Keywords

Sugar Corn Depression Income Expense 

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Copyright information

© Development Studies Association 1994

Authors and Affiliations

  • Kunibert Raffer

There are no affiliations available

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