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The Theory of Comparative Advantage in the Context of Underdevelopment and Growth

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  • JAGDISH BHAGWATI

    (Indian Statistical Institute, Calcutta, India.)

Abstract

The theory of comparative advantage has two facets which should be clearly distinguished: 1) positive; and, 2) welfare. The former relates to the formulation of hypotheses to explain the pattern of trade; the latter concerns the advantages to be derived from the possibility of various forms of tradel . This paper examines the status of the welfare propositions of trade theory in relation to 1) some features of underdeveloped countries; and, 2) the phenomenon of growth.

Suggested Citation

  • Jagdish Bhagwati, 1962. "The Theory of Comparative Advantage in the Context of Underdevelopment and Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 2(3), pages 339-353.
    • Handle: RePEc:pid:journl:v:2:y:1962:i:3:p:339-353
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