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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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23088.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:23088

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Keywords: common markets; customs unions; free trade; neo-Ricardian theory; traditional static theory;

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  1. Theodore Mariolis, 2008. "Heterogeneous Capital Goods And The Harrod-Balassa-Samuelson Effect," Metroeconomica, Wiley Blackwell, vol. 59(2), pages 238-248, 05.
  2. Theodore Mariolis, 2004. "Pure joint production and international trade: a note," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 28(3), pages 449-456, May.
  3. Melvin, James R, 1969. "Comments on the Theory of Customs Unions," The Manchester School of Economic & Social Studies, University of Manchester, University of Manchester, vol. 37(2), pages 161-68, June.
  4. Ruffin, Roy J., 1984. "International factor movements," Handbook of International Economics, Elsevier, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 5, pages 237-288 Elsevier.
  5. Steedman, Ian, 1982. "Joint Production and the Wage-Rent Frontier," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 92(366), pages 377-85, June.
  6. Robert G. King & Sergio Rebelo, 1990. "Public Policy and Economic Growth: Developing Neoclassical Implications," NBER Working Papers 3338, National Bureau of Economic Research, Inc.
  7. Brewer, Anthony, 1985. "Trade with fixed real wages and mobile capital," Journal of International Economics, Elsevier, vol. 18(1-2), pages 177-186, February.
  8. Mainwaring, L, 1974. "A Neo-Ricardian Analysis of International Trade," Kyklos, Wiley Blackwell, vol. 27(3), pages 537-53.
  9. Parrinello, Sergio, 2006. "National competitiveness and absolute advantage in a global economy," MPRA Paper 30807, University Library of Munich, Germany.
  10. Bidard, Christian, 1997. "Pure Joint Production," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 21(6), pages 685-701, November.
  11. Krishna Bharadwaj, 1970. "On the Maximum Number of Switches Between Two Production Systems," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), Swiss Society of Economics and Statistics (SSES), vol. 106(IV), pages 409-429, December.
  12. Ian Steedman, 1999. "Production of Commodities by Means of Commodities and the Open Economy," Metroeconomica, Wiley Blackwell, vol. 50(3), pages 260-276, October.
  13. 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.
  14. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
  15. G. D. A. MacDougall, 1960. "THE BENEFITS and COSTS OF PRIVATE INVESTMENT FROM ABROAD: A THEORETICAL APPROACH," The Economic Record, The Economic Society of Australia, vol. 36(73), pages 13-35, 03.
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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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