Endogenous Comparative Advantage, Government, and the Pattern of Trade
This paper explores the relationship between government policy and comparative advantage in a neoclassical model of international trade. A specification of the Ricardo-Viner model with public goods and public inputs is presented that is used to study the role that government policy can play in the determination and promotion of comparative advantage and in the maximization of the gains that may be obtained from international trade. The model is also used to study the influence that international trade can exert on the scale and scope of government activity. The paper endeavors to reconcile a positive theory of trade and government with the apparent shift in measured productivity that often follows an opening to trade. The paper concludes by interpreting the model in the context of recent policy discussions of such issues as structural impediments, competitiveness, and the role of trade policy.
|Date of creation:||Aug 1991|
|Publication status:||published as Clarida, Richard H. and Ronald Findlay. "Government, Trade, And Comparative Advantage," American Economic Review, 1992, v82(2), 122-127.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- R. Manning & J. McMillan, 1979. "Public Intermediate Goods, Production Possibilities, and International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 243-257, May.
- Michael Connolly, 1972. "Trade in Public Goods: A Diagrammatic Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 86(1), pages 61-78.
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
- Ishizawa, Suezo, 1988. "Increasing Returns, Public Inputs, and International Trade," American Economic Review, American Economic Association, vol. 78(4), pages 794-795, September.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:3813. 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: ()
If references are entirely missing, you can add them using this form.