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A Ricardo-Sraffa Paradigm Comparing Gains from Trade in Inputs and Finished Goods

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  • Paul A. Samuelson

Abstract

Here is how the 1817 Ricardo comparative advantage trade benefit analysis has to be modified to take account of post-1960 Sraffian benefits from capital-using technologies. By bringing J. S. Mill's demand model up to date in terms of its implicit geometric-mean money-metric utility, specific measurements for real net national product are calculated to partition sources of welfare gains (from output enhancements and taste-preference accommodations) in scenarios of (1) trade between equals, (2) trade between poor and rich nations, and (3) for biased inventions that enable a poor country to take over production of items in which formerly the rich place enjoyed comparative advantage. History of economic doctrine is mined to advance today's frontier of scientific knowledge--a forward-looking function for "Whig history."

Suggested Citation

  • Paul A. Samuelson, 2001. "A Ricardo-Sraffa Paradigm Comparing Gains from Trade in Inputs and Finished Goods," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1204-1214, December.
    • Handle: RePEc:aea:jeclit:v:39:y:2001:i:4:p:1204-1214
    Note: DOI: 10.1257/jel.39.4.1204
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    References listed on IDEAS

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    1. Avi J. Cohen, 1983. ""The Laws of Returns Under Competitive Conditions": Progress in Microeconomics since Sraffa (1926)?," Eastern Economic Journal, Eastern Economic Association, vol. 9(3), pages 213-220, Jul-Sep.
    2. Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, December.
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    Cited by:

    1. Zambelli, Stefano & Fredholm, Thomas & Venkatachalam, Ragupathy, 2017. "Robust measurement of national technological progress," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 38-55.
    2. Kwok Tong Soo, 2014. "The gains from trade in intermediate goods," Working Papers 63719205, Lancaster University Management School, Economics Department.
    3. repec:lan:wpaper:3341 is not listed on IDEAS
    4. Madarász, Aladár, 2018. "A "túl elméleti" tőzsdeügynök: David Ricardo és az Alapelvek kétszáz éve ["Too theoretical" a stockjobber: 200 years of David Ricardo and his principles]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 449-483.
    5. K T Soo, 2006. "What does the eclectic trade model say about the Samuelson conundrum?," Working Papers 578283, Lancaster University Management School, Economics Department.
    6. Faizan, Riffat & Haque, Adnan ul, 2016. "The Relationship between Societal attributes, Feminine Leadership & Management Style: Responses from Pakistan's Urban Region Female-Owned Businesses," MPRA Paper 73458, University Library of Munich, Germany, revised 21 Aug 2016.
    7. Soo, Kwok Tong, 2018. "The gains from trade in intermediate goods: A Ricardo-Sraffa-Samuelson model," International Review of Economics & Finance, Elsevier, vol. 54(C), pages 244-261.
    8. Carlos A. Cinquetti & Keith Maskus & Ricardo G. Silva, 2011. "A Comprehensive Empirical Analysis of Trade Policy for a Small Country with Monopolistic Competition," EcoMod2011 3399, EcoMod.
    9. Boglioni, Michele & Zambelli, Stefano, 2018. "Specialization patterns and reduction of CO2 emissions. An empirical investigation of environmental preservation and economic efficiency," Energy Economics, Elsevier, vol. 75(C), pages 134-149.
    10. Dvoskin, Ariel & Ianni, Guido, 2021. "Produced means of production and the chain of comparative advantages," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 635-647.
    11. repec:lan:wpaper:3062 is not listed on IDEAS
    12. repec:lan:wpaper:3155 is not listed on IDEAS
    13. Ariel Dvoskin & Gabriel Brondino, 2022. "An appraisal of alternative Ricardian trade models," BCRA Working Paper Series 2022104, Central Bank of Argentina, Economic Research Department.
    14. Boglioni, Michele, 2019. "European economic integration: Comparative advantages and free trade of the means of production," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 491-504.
    15. repec:lan:wpaper:3064 is not listed on IDEAS
    16. Wilhelm Kohler, 2002. "The Distributional Effects of International Fragmentation," Economics working papers 2002_01, Department of Economics, Johannes Kepler University Linz, Austria.
    17. Wilhelm Kohler, 2003. "The Distributional Effects of International Fragmentation," German Economic Review, Verein für Socialpolitik, vol. 4(1), pages 89-120, February.

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    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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