Comparative Advantage in International Trade
By:Mirela Keuschnigg
Published on 2012-12-06 by Springer Science & Business Media
Traditional trade theory explains trade only by differences between countries, notably differences in their relative endowments of factors of production. It suggests an inverse relationship between the similarity of countries and the volume of trade between them. The Heckscher-Ohlin (HO) factor propor tions theory derives the determinants of comparative advantage in a world of |two-ness| (two goods, two factors, two countries). It predicts that each country will export that good which uses the country's abundant factor rel atively most intensively. The literature on trade offers an impressive number of studies based on the HO theory. The main methodological problems en countered in the literature are: first, the appropriate formulation of the HO theorem in a multi-factor, multi-good and multi-country framework; second, proper tests of the HO theory and proper links of the theory to empirical analysis. The relevance of the HO theory began to be questioned when important facts of modern international trade proved to be inconsistent with its theoretical framework. Leontief (1953) tested the factor proportions theory, using the US data for 1947, and found that the US had more labor-intensive exports than imports, which is opposed to both perceptions and estimations of factor endowments. The Leontief Pamdoxcreated doubt as to whether or not actual trade patterns and factor endowments are related as predicted by theory, and caused many controversial discussions with regard to the proper empirical implementation of the factor proportions theory.
This Book was ranked at 5 by Google Books for keyword explaining international production.
Book ID of Comparative Advantage in International Trade's Books is IB30CAAAQBAJ, Book which was written byMirela Keuschnigghave ETAG "h8HNmvHu4VY"
Book which was published by Springer Science & Business Media since 2012-12-06 have ISBNs, ISBN 13 Code is 9783642502125 and ISBN 10 Code is 3642502121
Reading Mode in Text Status is true and Reading Mode in Image Status is true
Book which have "164 Pages" is Printed at BOOK under CategoryBusiness and Economics
This Book was rated by Raters and have average rate at ""
This eBook Maturity (Adult Book) status is NOT_MATURE
Book was written in en
eBook Version Availability Status at PDF is true and in ePub is true
Book Preview
Tidak ada komentar:
Posting Komentar