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A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets

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  • Mariolis, Theodore

Abstract

The vast majority of meaningful discussions about the processes of economic integration and liberalization of trade have so far revolved around the neoclassical theory. This paper is based on the neo-Ricardian theory, briefly investigates the issues of free trade, customs unions and common markets, and shows that the relevant neoclassical propositions do not hold and/or make no sense in a world ‘of production of commodities by means of commodities’. Thus, the fundamental theoretical presuppositions of the aforesaid debate are called in question.

Suggested Citation

  • Mariolis, Theodore, 2010. "A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets," MPRA Paper 23088, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:23088
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    References listed on IDEAS

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    8. Theodore Mariolis, 2004. "Pure joint production and international trade: a note," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(3), pages 449-456, May.
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    Cited by:

    1. Mariolis, Theodore & Papoulis, Κostas, 2010. "Δυναμική Του Χρέους, ‘Δίδυμα Ελλείμματα’ Και Διεθνής Ανταγωνιστικότητα Της Ελληνικής Οικονομίας [Debt dynamics, ‘twin deficits’ and international competitiveness of the Greek economy]," MPRA Paper 23173, University Library of Munich, Germany.

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    More about this item

    Keywords

    common markets; customs unions; free trade; neo-Ricardian theory; traditional static theory;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • F15 - International Economics - - Trade - - - Economic Integration
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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