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The Debate about Trade: Some small steps towards one

In: Proceedings of the Conference on Globalization and Its Discontents

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Author Info

  • Robbert Maseland

    (Radboud University Nijmegen)

  • Albert de Vaal

    (Radboud University Nijmegen)

Abstract

This paper addresses the discussion about the desirability of international trade. It starts out from the stylized observation that trade economists and ‘anti-globalists’ not only reject each others conclusions, but also the validity of the reference frame in which the other side makes its arguments. We mend for this problem, constructing a rational dialogue between the various parties by making differences in criteria and modes of analysis explicit. Instead of seeking to develop a comprehensive common framework, we adopt a ‘pluralist’ position, in which we only create a common structure in so far as necessary for meaningful dialogue. We judge the effects of trade as they follow from both the analytical models used by proponents and opponents and from the perspectives of both the criteria used by proponents and opponents. Applying different criteria to both standard and poverty-sensitive trade models, we find that both camps have valid cases, but also that diagonally opposite positions do not necessarily lead to different judgements regarding the desirability of trade. Once differences in preconceptions and criteria are cleared, a fruitful debate is therefore possible. We conclude that the debate about free trade cannot be settled by economics and should in the end take place in the moral and political arena.

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Bibliographic Info

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This chapter was published in:

  • Oguz Esen & Ayla Ogus (ed.), 2007. "Proceedings of the International Conference on Globalization and Its Discontents," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2007, March.
    This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200706.

    Handle: RePEc:izm:prcdng:200706

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    Related research

    Keywords: international trade; globalization;

    References

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    1. Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
    2. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
    3. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
    4. Kochar, Anjini, 1995. "Explaining Household Vulnerability to Idiosyncratic Income Shocks," American Economic Review, American Economic Association, vol. 85(2), pages 159-64, May.
    5. Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
    6. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
    7. Camerer, Colin, et al, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 407-41, May.
    8. Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
    9. Xiaokai Yang, 1994. "Endogenous vs. exogenous comparative advantage and economies of specialization vs. economies of scale," Journal of Economics, Springer, vol. 60(1), pages 29-54, February.
    10. Robbert Maseland & Albert Vaal, 2011. "Trade, development, and poverty-induced comparative advantage," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(2), pages 153-174.
    11. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
    12. Moser, Caroline O. N., 1998. "The asset vulnerability framework: Reassessing urban poverty reduction strategies," World Development, Elsevier, vol. 26(1), pages 1-19, January.
    13. Maseland, Robbert & Vaal, Albert de, 2001. "How fair is fair trade?," Research Report 01C48, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
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