When comparative advantage is not enough: business costs in small remote economies

@article{Winters2004WhenCA,
  title={When comparative advantage is not enough: business costs in small remote economies},
  author={L. Winters and P. Martins},
  journal={World Trade Review},
  year={2004},
  volume={3},
  pages={347 - 383}
}
This paper uses a newly collected dataset on business costs to investigate empirically whether small and remote economies are inherently uncompetitive. Although in theory these economies can overcome their small size by specialising and trading, this may not be enough to generate acceptable incomes because they face a combination of diseconomies of small scale and high transaction costs. We conclude that there are almost certainly some very small economies for which this is true. These… Expand
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