Baeten, Joost; Butter, Frank A.G. den - Faculteit der Economische Wetenschappen en … - 2006
productivity. In order to promote further specialisation and trade, innovations which lead to lower transaction costs - trade … innovations - are needed. When trading countries, which are likely to have a comparative advantage in reducing transaction costs … have the character of a public good. Moreover, trade innovations bring about positive externalities, which is another …