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Globalisation and sticky prices: ‘con’ or conundrum?

Albertson, Kevin and Simister, JG and Syme, T (2015) Globalisation and sticky prices: ‘con’ or conundrum? Real-World Economics Review, 73. pp. 92-98. ISSN 1755-9472

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Abstract

For a nation with no absolute advantage, specialising in comparatively advantageous production will reduce welfare where prices are sticky. This finding contrasts with the general view that pursuit of comparative advantage will always increase welfare.

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