IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v19y2010i2p346-348.html
   My bibliography  Save this article

Breaks in the chain of comparative advantage

Author

Listed:
  • Choi, E. Kwan
  • Thompson, Henry

Abstract

The chain proposition of comparative advantage states that when factor prices differ between two countries producing many products with two factors, every export of the capital abundant country would be more capital intensive than any of its imports. The present note points out that an economy has the option to break the chain to reach full employment if its factor endowment is not spanned by the production cone of the more intensive products.

Suggested Citation

  • Choi, E. Kwan & Thompson, Henry, 2010. "Breaks in the chain of comparative advantage," International Review of Economics & Finance, Elsevier, vol. 19(2), pages 346-348, April.
  • Handle: RePEc:eee:reveco:v:19:y:2010:i:2:p:346-348
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059-0560(09)00025-2
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bhagwati, Jagdish N, 1972. "The Heckscher-Ohlin Theorem in the Multi-Commodity Case," Journal of Political Economy, University of Chicago Press, vol. 80(5), pages 1052-1055, Sept.-Oct.
    2. Deardorff, Alan V., 1979. "Weak links in the chain of comparative advantage," Journal of International Economics, Elsevier, vol. 9(2), pages 197-209, May.
    3. John Romalis, 2004. "Factor Proportions and the Structure of Commodity Trade," American Economic Review, American Economic Association, vol. 94(1), pages 67-97, March.
    4. Choi, E. Kwan, 2008. "Factor growth and equalized factor prices," International Review of Economics & Finance, Elsevier, vol. 17(4), pages 517-528, October.
    5. Chao, Chi-Chur & Yu, Eden S.H., 2007. "Trade liberalization, foreign ownership, and the environment in a small open economy," International Review of Economics & Finance, Elsevier, vol. 16(4), pages 471-477.
    6. Nevin Cavusoglu & Bruce Elmslie, 2005. "The Chain Version of Comparative Advantage: An Empirical Investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(3), pages 404-421, October.
    7. R. W. Jones, 1956. "Factor Proportions and the Heckscher-Ohlin Theorem," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 1-10.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Chain Comparative advantage;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:19:y:2010:i:2:p:346-348. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.