Uncertainty and economic self-sufficiency

Leonard K. Cheng*

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

4 Citations (Scopus)

Abstract

Existing formal analysis of international trade under uncertainty has established that it is never optimal to forgo completely the opportunity of trade. This paper uses some simple trade models to derive conditions under which zero trade or complete self-sufficiency is optimal when uncertainty is present. The paper does not advocate extreme policies against international trade and specialization. Its purpose is to show that under certain circumstances involving uncertainty economic self-sufficiency in some goods may be desirable.

Original languageEnglish
Pages (from-to)167-178
Number of pages12
JournalJournal of International Economics
Volume23
Issue number1-2
DOIs
Publication statusPublished - 1 Jan 1987
Externally publishedYes

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Economics
Self-sufficiency
Uncertainty
International trade
International specialisation
Economic uncertainty

Cite this

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Uncertainty and economic self-sufficiency. / Cheng, Leonard K.

In: Journal of International Economics, Vol. 23, No. 1-2, 01.01.1987, p. 167-178.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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