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On Graham’s Theory of Multicountry Multicommodity Trade

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  • Rajas Parchure

Abstract

Mathematical formulations of Frank D. Graham’s theory of multicountry multicommodity trade have not provided numerical methods for finding the world trade equilibrium. Graham was in possession of such methods but his writings do not reveal what they were. This paper proposes an algorithm for finding Graham’s world trade equilibrium. Modifications to the algorithm that are needed to cover such subjects as intercountry transfers, tariffs and taxes, have been illustrated. Further, it is shown that Graham’s theory can be extended to accommodate international trade in intermediate capital goods. URL: [http://210.212.173.67/pdfs/working%20papers/wp23.pdf].

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  • Rajas Parchure, 2011. "On Graham’s Theory of Multicountry Multicommodity Trade," Working Papers id:4258, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4258
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    2. Frank D. Graham, 1932. "The Theory of International Values," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 46(4), pages 581-616.
    3. Jochen Schumann & Horst Todt, 1957. "Classical Theory, Graham's Theory, and Linear Programming in International Trade: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 71(3), pages 464-469.
    4. Kalyan K. Sanyal & Ronald W. Jones, 2018. "The Theory of Trade in Middle Products," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 13, pages 203-231, World Scientific Publishing Co. Pte. Ltd..
    5. Lloyd A. Metzler, 1942. "The Transfer Problem Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 50(3), pages 397-397.
    6. Frank D. Graham, 1923. "The Theory of International Values Re-examined," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 38(1), pages 54-86.
    7. Lionel W. McKenzie, 1953. "Specialisation and Efficiency in World Production," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(3), pages 165-180.
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