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Trade Costs Algorithm in Manoilescu Generalised Scheme


  • Dogaru, Vasile


The study of the comparative advantage’s scheme, using the modified prices because of the trade costs in terms of a real two product barter, brings us on a “previous” position towards the merchandise exchange using the currency. In this new algorithm of scheme, the remarks include in the formal analytical plan the prices’ increase cases, determined by the tariff and non-tariff measures and also by the reduction ones through subventions or other similar measures of these. Through the national/regional existence of some of these measures (Hagen, 1958) is supposed to be a sustainer of the optimum economic behavior (more efficient) of the exchange agents, found in a certain economic space and time, and also in an economic environment expected due to the introduction of this kind of economic and financial instruments. The observation of the way how the trade costs influence, comprehended in the widest meaning possible, assures the partial observation of the national interest’s interference with the individual one through the legal and economical norms, necessary to be sent in the hierarchy’s synchronize (similar and simultaneous) of the products over the comparative advantage measured through gains from trade with the established one according to the efficiency. The effects determined by the efficiency’s modification – as it will be deducted in the second stage of Manoilescu generalized scheme – are included in the comparative advantage’s size. The trade costs’ case represents in a certain way the repetition of the one of the same initial internal and international prices’ usage in a barter exchange. The main remark is that now a higher consumption of resources takes place because of the products’ transfer to and from far economic areas and also in connection with some national custom house’s pass beyond which other legal and economic standards, usually, are used.

Suggested Citation

  • Dogaru, Vasile, 2007. "Trade Costs Algorithm in Manoilescu Generalised Scheme," MPRA Paper 6919, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6919

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    References listed on IDEAS

    1. Carolyn L. Evans & James Harrigan, 2003. "Distance, time, and specialization," International Finance Discussion Papers 766, Board of Governors of the Federal Reserve System (U.S.).
    2. Dogaru, Vasile, 2005. "Comparative Advantage In The Generalized Scheme Of Manoilescu," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 2(3), pages 91-113.
    3. Jack Triplett, 2004. "Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes: Special Application to Information Technology Products," OECD Science, Technology and Industry Working Papers 2004/9, OECD Publishing.
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    More about this item


    comparative advantage; gains from trade; Manoilescu generalized scheme; entropy law; resources saving;

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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