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On Blending Competitive Trade Models

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  • Ronald W. Jones

Abstract

Three standard models typically discussed in the theory of international trade are the Ricardian model, the Heckscher–Ohlin model and the Specific-Factors model. Models are often compared with each other, in an attempt to analyze which model is best or fits reality better. Instead, I suggest that these international trade models can often be blended to take account of finite changes when, as a country develops, the appropriate model to be used changes as the pattern of production changes. Trade allows countries to produce fewer commodities than it consumes, and which commodities are selected to be produced may change as the economy grows in the size of its endowment bundle and/or technology changes. At issue is not only the question of which commodities are produced, but also how many commodities are produced, especially with reference to the number of productive factors.
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  • Ronald W. Jones, 2015. "On Blending Competitive Trade Models," Pacific Economic Review, Wiley Blackwell, vol. 20(5), pages 651-686, December.
    • Handle: RePEc:bla:pacecr:v:20:y:2015:i:5:p:651-686
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    File URL: http://hdl.handle.net/10.1111/1468-0106.12138
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    2. Mayer, Wolfgang, 1974. "Short-Run and Long-Run Equilibrium for a Small Open Economy," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 955-967, Sept./Oct.
    3. Ronald W. Jones, 2018. "“Protection and Real Wages”: The History of an Idea," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 6, pages 93-108, World Scientific Publishing Co. Pte. Ltd..
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    7. Jones, Ronald W., 2012. "Real wages and non-traded goods," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 177-185.
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    9. Ronald Jones & Sugata Marjit, 2009. "Competitive trade models and real world features," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(1), pages 163-174, October.
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    1. Yano, Makoto, 2021. "Professor Ronald W. Jones and his influence on Asia Pacific economics," Journal of Asian Economics, Elsevier, vol. 77(C).

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