Ricardo Meets China, India and U.S. Three Hundred Years Later
AbstractAs our trading world becomes more globalized, who benefits and who gets hurt? This paper relies on the Ricardian model to explore the effects of technological improvements in underdeveloped countries on the welfare of developed countries. For example, trading between the United States and China, which has undergone a technological improvement in commodities which China imports and exports, may lead to different welfare implications for both countries. The paper models several scenarios to indicate and demonstrate the arguments for and against globalization. The findings suggest that certain policies should be implemented to maintain and enhance the competitiveness of developed countries.
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Bibliographic InfoPaper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 09-015.
Length: 36 pages
Date of creation: 03 Mar 2009
Date of revision:
International trade; Ricardian Model; Samuelson; Gainers and losers from trade; East-West trade; North-South Trade; China; India; United States; Outsourcing;
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; Research and Development; Intellectual Property Rights
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-02 (All new papers)
- NEP-CNA-2009-05-02 (China)
- NEP-CWA-2009-05-02 (Central & Western Asia)
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.:
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