scholarly journals Trade Theory in International Economics

2019 ◽  
pp. 33-42
Author(s):  
Krzysztof Król
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
International Economics ◽  
Trade Theory ◽  
New Trade Theory ◽  
Absolute Advantage ◽  
Compare And Contrast

You will get an overview about the nature of trade theory. Many terms related international trade here will be discussed. Overview of Mercantilism we will discuss here. Theory of absolute advantage will be deeply discussed here. Comparative Advantage related the advantage term here I will describe. In this article the ideas of Heckscher-Olin Theory, new Trade Theory and the theory of Porter’s Diamond will be discussed. By this article, we will be able to clearly understand international trade. WE will be able to compare and contrast different trade theories.

scholarly journals The Latent Absolute Advantage Of The Comparative Advantage In Theories Of International Trade

2011 ◽  
Vol 5 (1) ◽  
Author(s):  
Nguyen Thuong Lang
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
International Economics ◽  
Opposite View ◽  
Basic Concepts ◽  
The Absolute ◽  
Absolute Advantage ◽  
Special Case

The absolute advantage and comparative advantage are the basic concepts of the international economics. Up till now, the popular understanding about them is that absolute advantage is the special case of the comparative advantage. This view has been dominant in all books related to the field of international economics. However, the comparative advantage by nature is the absolute advantage. Generally, comparative advantage is only particular case of absolute advantage. In other words, comparative advantage has the latent absolute advantage. It is the opposite view of the traditional one on absolute and comparative advantage in the field of international trade theories and it constructs the content of this paper.

Review of Literature

2020 ◽  
pp. 13-35
Author(s):  
Murali Patibandla
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Developing Economies ◽  
Import Substitution ◽  
Trade Policies ◽  
Trade Theory ◽  
Reform Era ◽  
Strategic Trade ◽  
New Trade Theory ◽  
Trade And Investment

The chapter reviews fundamental theoretical contributions explaining determinants of international trade starting from comparative advantage, neo-technology theories, intra-industry trade, strategic trade policies and ‘New’ New Trade Theory. For developing economies, the Heckscher-Ohlin (H&O) Theory of Comparative Advantage in labour abundance is relevant. However, as countries start growing economically, neo-technology and intra-industry factors become relevant. The book traces the transition of international trade behaviour starting the Pre-reform era of import substitution to the Post-reform era of opening to international trade and investment. The conceptual discussion provides basic underlying theories in understanding international trade and investment behaviour of firms. It shows under what conditions international trade and investment are beneficial to a country. The discussion of the theories helps in formulating hypotheses for empirical testing in the following chapters.

Trade and Spatial Growth

2017 ◽  
Vol 18 (1) ◽  
pp. 94-111
Author(s):  
Sirimal Abeyratne ◽  
N. S. Cooray
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Global Economy ◽  
Spatial Concentration ◽  
Trade Theory ◽  
Missing Link ◽  
Spatial Growth

Comparative advantage is based on ‘locational factors’ so that trade leads to growth and its spatial concentration. Until recently, the nexus between trade and spatial growth received little space within trade analyses though it did not appear to be a missing link in initial contributions to trade theory. The reshaping of the global economy with greater integration has called for analyses of trade and spatial growth. This article examines theoretical premises of the link between international trade and spatial growth, and the implications of reshaping of the global economy for the study of spatial growth within trade theory.

scholarly journals Adam Smith's theory of absolute advantage and the use of doxography in the history of economics

2012 ◽  
Vol 5 (2) ◽  
pp. 54 ◽  
Author(s):  
Reinhard Schumacher
Keyword(s):  
International Trade ◽  
Trade Theory ◽  
History Of Economics ◽  
Relevant Today ◽  
International Trade Theory ◽  
History Of ◽  
Absolute Advantage ◽  
The Way

This article reconstructs Adam Smith's theory of international trade and compares it with the way it is presented in modern textbooks as the theory of absolute advantage. This textbook presentation falls short of Smith's original ideas. I argue that the reason for this is the doxographic reconstruction of Smith's theory to fit him into a Whig history of international trade theory. In this way the historiography of international trade theory has falsely established Smith as a forerunner of modern neoclassical trade theory. I conclude by discussing to what extent Smith's insights can still be relevant today and what can be learnt from the mistreatment Smith has suffered in the historiography of international trade theory.

scholarly journals RIVIEW SKEMA ACFTA TERHADAP EKSPOR INDONESIA KE TIONGKOK, HONGKONG DAN ASEAN

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Made Adnyana
Keyword(s):  
Regression Analysis ◽  
Free Trade ◽  
Comparative Advantage ◽  
Theory Model ◽  
Trade Theory ◽  
New Trade Theory ◽  
Highly Sensitive ◽  
Export Volume ◽  
Early Harvest ◽  
Normal Track

<p>          In addition to the free trade accord of Bali II, Indonesia has also agreed to implement ACFTA with RRChina and Hongkong. Four schemes agreed up on are Early Harvest Program (EHP), Normal Track (NT) Sensitive Track (ST) and Highly Sensitive Track (HST). The  method used in the study is applying  New Trade Theory model, i.e. involving Comparative Advantage determinants, along with regression analysis. The study  focuses on  data on export volume of  1996 up to  2013 on three-monhly basis. The finding of the study is that certain commodities have gained promising export in 2010; steady export growth has been experienced by two commodities numbered as 87 and 27 at the schemes.   The number 26 commodity at the scheme experienced the decline.</p><p><strong> </strong></p><p><strong>Keywords: </strong>ACFTA schemes, exsport from Indonesia, RR China, Hongkong</p>

scholarly journals International Trade Effects: Lower Cost or Higher Quality?

2015 ◽  
Vol 22 (1-2) ◽  
pp. 15-26
Author(s):  
Le Duc Niem
Keyword(s):  
International Trade ◽  
Quality Improvement ◽  
Lower Cost ◽  
Trade Theory ◽  
New Trade Theory ◽  
Differentiated Goods ◽  
Trade Effects ◽  
Main Effects

In this paper, we modify the model of Liao (2008) to investigate the trade of quality differentiated goods between countries. We show that main effects of the trade are on quality improvement of all goods and the trade does not make the goods cheaper. Thus, we argue that New Trade Theory might not explain international trade that is based on quality differentiation.The Journal of Development and Administrative Studies, Vol. 22, No. 1-2, pp. 15-26, 2014

scholarly journals Putting Ricardo to Work

2012 ◽  
Vol 26 (2) ◽  
pp. 65-90 ◽  
Author(s):  
Jonathan Eaton ◽  
Samuel Kortum
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
International Economy ◽  
Trade Theory ◽  
Center Stage ◽  
Ricardian Model ◽  
New Generation ◽  
David Ricardo

David Ricardo (1817) provided a mathematical example showing that countries could gain from trade by exploiting innate differences in their ability to make different goods. In the basic Ricardian example, two countries do better by specializing in different goods and exchanging them for each other, even when one country is better at making both. This example typically gets presented in the first or second chapter of a text on international trade, and sometimes appears even in a principles text. But having served its pedagogical purpose, the model is rarely heard from again. The Ricardian model became something like a family heirloom, brought down from the attic to show a new generation of students, and then put back. Nearly two centuries later, however, the Ricardian framework has experienced a revival. Much work in international trade during the last decade has returned to the assumption that countries gain from trade because they have access to different technologies. These technologies may be generally available to producers in a country, as in the Ricardian model of trade, our topic here, or exclusive to individual firms. This line of thought has brought Ricardo's theory of comparative advantage back to center stage. Our goal is to make this new old trade theory accessible and to put it to work on some current issues in the international economy.

scholarly journals Ricardo and Haberler: an essay on the evolution of the economic thought based on the four magic numbers in the international trade theory

2021 ◽  
Vol 38 (77) ◽  
pp. 171-185
Author(s):  
Flavia Poinsot
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Labor Cost ◽  
Economic Thought ◽  
Magic Numbers ◽  
Trade Theory ◽  
International Trade Theory ◽  
New Research ◽  
Over Time

The Ricardian comparative advantage is one key cornerstone in the international trade theory. There is no shortage of textbooks supposing that Ricardo used solely labour as a factor of production. This approach originates with Haberler in the 1930s, who wrote that Ricardo’s theory of comparative advantage is robust, but not the labor-cost doctrine, which, Haberler assumed, Ricardo applied. This paper summarizes why Haberler’s perspective emerged, essaying an explanation of his way of interpreting Ricardo. To do this, we considered the new research on Ricardo, whose facets to be known seem to renew over time and never end.

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