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A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets

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  • Mariolis, Theodore

Abstract

The vast majority of meaningful discussions about the processes of economic integration and liberalization of trade have so far revolved around the neoclassical theory. This paper is based on the neo-Ricardian theory, briefly investigates the issues of free trade, customs unions and common markets, and shows that the relevant neoclassical propositions do not hold and/or make no sense in a world ‘of production of commodities by means of commodities’. Thus, the fundamental theoretical presuppositions of the aforesaid debate are called in question.

Suggested Citation

  • Mariolis, Theodore, 2010. "A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets," MPRA Paper 23088, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:23088
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    File URL: https://mpra.ub.uni-muenchen.de/23088/1/MPRA_paper_23088.pdf
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    References listed on IDEAS

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    1. Bidard, Christian, 1997. "Pure Joint Production," Cambridge Journal of Economics, Oxford University Press, vol. 21(6), pages 685-701, November.
    2. Steedman, Ian, 1982. "Joint Production and the Wage-Rent Frontier," Economic Journal, Royal Economic Society, vol. 92(366), pages 377-385, June.
    3. King, Robert G & Rebelo, Sergio, 1990. "Public Policy and Economic Growth: Developing Neoclassical Implications," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 126-150, October.
    4. Ruffin, Roy J., 1984. "International factor movements," Handbook of International Economics,in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 5, pages 237-288 Elsevier.
    5. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers Archive 11375, Iowa State University, Department of Economics.
    6. Mainwaring, L, 1974. "A Neo-Ricardian Analysis of International Trade," Kyklos, Wiley Blackwell, vol. 27(3), pages 537-553.
    7. Parrinello, Sergio, 2006. "National competitiveness and absolute advantage in a global economy," MPRA Paper 30807, University Library of Munich, Germany.
    8. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676.
    9. G. D. A. MacDougall, 1960. "THE BENEFITS and COSTS OF PRIVATE INVESTMENT FROM ABROAD: A THEORETICAL APPROACH," The Economic Record, The Economic Society of Australia, vol. 36(73), pages 13-35, March.
    10. Melvin, James R, 1969. "Comments on the Theory of Customs Unions," The Manchester School of Economic & Social Studies, University of Manchester, vol. 37(2), pages 161-168, June.
    11. Theodore Mariolis, 2004. "Pure joint production and international trade: a note," Cambridge Journal of Economics, Oxford University Press, vol. 28(3), pages 449-456, May.
    12. Ian Steedman, 1999. "Production of Commodities by Means of Commodities and the Open Economy," Metroeconomica, Wiley Blackwell, vol. 50(3), pages 260-276, October.
    13. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
    14. Krishna Bharadwaj, 1970. "On the Maximum Number of Switches Between Two Production Systems," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 106(IV), pages 409-429, December.
    15. Theodore Mariolis, 2008. "Heterogeneous Capital Goods And The Harrod-Balassa-Samuelson Effect," Metroeconomica, Wiley Blackwell, vol. 59(2), pages 238-248, May.
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    Citations

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    Cited by:

    1. Mariolis, Theodore & Papoulis, Κostas, 2010. "Δυναμική Του Χρέους, ‘Δίδυμα Ελλείμματα’ Και Διεθνής Ανταγωνιστικότητα Της Ελληνικής Οικονομίας
      [Debt dynamics, ‘twin deficits’ and international competitiveness of the Greek economy]
      ," MPRA Paper 23173, University Library of Munich, Germany.

    More about this item

    Keywords

    common markets; customs unions; free trade; neo-Ricardian theory; traditional static theory;

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • F15 - International Economics - - Trade - - - Economic Integration
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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