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Comparative Advantage: Theory and Application to Developing Country Agriculture

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  • Ian Goldin

Abstract

This paper investigates the application of the principle of comparative advantage to policy analysis and policy formulation. It is concerned with both the theory and the measurement of comparative advantage. Despite its central role in economics, the theory is found to be at an impasse, with its usefulness confined mainly to the illustration of economic principles which in practice are not borne out by the evidence. The considerable methodological problems associated with the measurement of comparative advantage are highlighted in the paper. Attempts to derive indicators of comparative advantage, such as those associated with "revealed comparative advantage", "direct resource cost", "production cost" and "trade liberalisation" studies are reviewed. These methods are enlightening, but are unable to provide general perspectives which allow an analysis of dynamic comparative advantage. Comparative advantage, despite its centrality to economics, remains remote from policy ... Cet ouvrage s'intéresse à l'application du principe de l'avantage comparatif à l'analyse et l'expansion politiques, à la fois sur le plan de la théorie et sur celui de la mesure de l'avantage comparatif. Malgré son rôle essentiel en économie, cette notion se trouve dans une impasse puisqu'elle sert surtout à illustrer des principes économiques qui, dans la pratique, ne paraissent pas évidents. Les difficiles problèmes méthodologiques liés à la mesure de l'avantage comparatif sont donc mis en lumière. L'étude passe en revue les tentatives de définition d'indicateurs de l'avantage comparatif, par exemple les travaux sur "l'avantage comparatif révélé", "le coût direct de ressources", "le coût de production" et "la libéralisation des échanges". Malgré leur pertinence, ces méthodes restent cependant incapables d'apporter une perspective d'ensemble susceptible de concourir à l'analyse de l'avantage comparatif dynamique, lequel, en dépit de sa place centrale dans les théories ...

Suggested Citation

  • Ian Goldin, 1990. "Comparative Advantage: Theory and Application to Developing Country Agriculture," OECD Development Centre Working Papers 16, OECD Publishing.
    • Handle: RePEc:oec:devaaa:16-en
    DOI: 10.1787/312277858021
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    Cited by:

    1. Thierry Mayer, 2006. "Policy Coherence for Development : A Background paper on Foreign Direct Investment," SciencePo Working papers Main hal-01065640, HAL.
    2. repec:hal:wpspec:info:hdl:2441/10184 is not listed on IDEAS
    3. Lakner, Zoltan & Husti, Istvan, 2008. "The Necessity Of Strategic Thinking In Hungarian Agribusiness," Bulletin of the Szent Istvan University 47551, Szent Istvan University, Faculty of Economics and Social Sciences.
    4. Leishman, David & Menkhaus, Dale J. & Whipple, Glen D., 1999. "Revealed Comparative Advantage And The Measurement Of International Competitiveness For Agricultural Commodities: An Empirical Analysis Of Wool Exporters," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35691, Western Agricultural Economics Association.
    5. Hailay Gebretinsae Beyene, 2014. "Trade Integration and Revealed Comparative Advantages of Sub-Saharan Africa and South Asian Merchandize Export," Foreign Trade Review, , vol. 49(2), pages 163-176, May.
    6. repec:spo:wpecon:info:hdl:2441/10184 is not listed on IDEAS
    7. Emediegwu, Lotanna E. & Wossink, Ada & Hall, Alastair, 2022. "The impacts of climate change on agriculture in sub-Saharan Africa: A spatial panel data approach," World Development, Elsevier, vol. 158(C).
    8. Timothy Williams, 2015. "Reconciling food and water security objectives of MENA and sub-Saharan Africa: is there a role for large-scale agricultural investments?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1199-1209, December.
    9. Kirschke, D. & Weber, G., 2004. "Internationale Wettbewerbsfähigkeit und Optionen für die EU-Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    10. Bureau, Jean Christophe & Butault, Jean-Pierre & Hoque, Anwarul, 1992. "International Comparisons of Costs of Wheat Production in the EC and United States," Staff Reports 278676, United States Department of Agriculture, Economic Research Service.
    11. TORAYEH, Neveen M., 2013. "The Competitiveness Of The Egyptian Agricultural Export In The Eu Market;Should Egypt Diversify Its Trade Pattern?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(2), pages 129-148.
    12. Mohammad Zohaib Saeed & Shankar Ghimire, 2022. "Environmental Effects of Commodity Trade vs. Service Trade in Developing Countries," Commodities, MDPI, vol. 1(2), pages 1-12, November.
    13. repec:hal:spmain:info:hdl:2441/10184 is not listed on IDEAS

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