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Reconciling Ricardo's Comparative Advantage with Smith's Productivity Theory

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  • Jorge Morales Meoqui

    (Independent Researcher)

Abstract

There are three main claims in the paper: first, there is sufficient evidence for affirming that Ricardo adhered to Smith's productivity theory; second, Ricardo's original demonstration of the comparative- advantage proposition is indeed compatible and complementary with respect to the latter; and third, Ricardo agreed with Smith's multifactorial explanation of the pattern of trade, which includes increasing returns and economies of scale. These results suggest that the level of compatibility between the international trade theories of Smith and Ricardo is significantly higher than it is currently reflected in the economic literature. They also add a new perspective to the ongoing process of reassessment of Smith's contributions to international trade theory, further strengthening the view that he was indeed an outstanding international trade theorist.

Suggested Citation

  • Jorge Morales Meoqui, 2014. "Reconciling Ricardo's Comparative Advantage with Smith's Productivity Theory," Economic Thought, World Economics Association, vol. 3(2), pages 1-21, September.
    • Handle: RePEc:wea:econth:v:3:y:2014:i:2:p:21
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    References listed on IDEAS

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    1. Blecker, Robert A, 1997. "The 'Unnatural and Retrograde Order': Adam Smith's Theories of Trade and Development Reconsidered," Economica, London School of Economics and Political Science, vol. 64(255), pages 527-537, August.
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    Cited by:

    1. Jorge Morales Meoqui, 2017. "Ricardo's Numerical Example Versus Ricardian Trade Model: a Comparison of Two Distinct Notions of Comparative Advantage," Economic Thought, World Economics Association, vol. 6(1), pages 35-55, March.
    2. Morales Meoqui, Jorge, 2012. "On the distribution of authorship-merits for the comparative-advantage proposition," MPRA Paper 35905, University Library of Munich, Germany.

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    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)

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