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Technological Improvements and Comparative Advantage Reconsidered

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Author Info
Yochanan Shachmurove () (The City College of The City University of New York and Department of Economics, the University of Pennsylvania)
Uriel Spiegel () (Department of Economics, University of Pennsylvania and Department of Economics, Bar Ilan University)

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Abstract

Given a world consisting of two countries, two commodities, and two consumers, this paper analyzes the potential effects of the current global trend of shifting world productions with regards to consumer goods. When technological improvements occur in a developing country, would terms of trade remain favorable for a developed country? Would both countries benefit? Instances where one or both countries benefit are feasible. However the developed country may lose as a result of an improvement in the production of the good that previously had been exported by the developed country.

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Publisher Info
Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 06-023.

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Length: 11 pages
Date of creation: 01 Sep 2006
Date of revision:
Handle: RePEc:pen:papers:06-023

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Related research
Keywords: International trade Samuelson autarky equilibrium comparative advantage endowment shock

Find related papers by JEL classification:
F0 - International Economics - - General
F1 - International Economics - - Trade
O - Economic Development, Technological Change, and Growth
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O3 - Economic Development, Technological Change, and Growth - - Technological Change
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. repec:fth:michin:323 is not listed on IDEAS
  2. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer. [Downloadable!] (restricted)
  3. F. Gerard Adams & Byron Gangnes & Yochanan Shachmurove, 2006. "Why is China so Competitive? Measuring and Explaining China's Competitiveness," The World Economy, Blackwell Publishing, vol. 29(2), pages 95-122, 02. [Downloadable!] (restricted)
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  4. Johnson, G.E. & Stafford, F.P., 1993. "International Competition and Real Wages," Working Papers 323, Research Seminar in International Economics, University of Michigan.
  5. Johnson, George E & Stafford, Frank P, 1993. "International Competition and Real Wages," American Economic Review, American Economic Association, vol. 83(2), pages 127-30, May. [Downloadable!] (restricted)
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