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On Some “New” Interpretations of Ricardo’s Principle of Comparative Advantages

Author

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  • Parrinello, Sergio

    (Sapienza University of Rome)

Abstract

Different theories of international trade have originated from Chapter VII “On Foreign Trade” of Ricardo’s Principles and particularly from the interpretation of his numerical example of the gains from trade. In this paper a relatively new interpretation of such example and the resulting implications will be assessed in the light of Sraffa’s writings (1930, 1951) and of the so-called Neo-Ricardian approach applied to the theory of foreign trade. In particular, it will be reconsidered: i) the analogy between the choice of interna-tional specialization and the choice of techniques; ii) the conditions under which absolute cost advantages may prevail over comparative advantages and affect the pattern of inter-national trade and the delocalization of the national industries.

Suggested Citation

  • Parrinello, Sergio, 2022. "On Some “New” Interpretations of Ricardo’s Principle of Comparative Advantages," Centro Sraffa Working Papers CSWP60, Centro di Ricerche e Documentazione "Piero Sraffa".
    • Handle: RePEc:ris:sraffa:0060
    as

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    File URL: http://www.centrosraffa.org/public/bba9693f-9bfa-47cb-b09e-6da1021f173f.pdf
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    References listed on IDEAS

    as
    1. Piero Sraffa & L. Einaudi, 1930. "An Alleged Correction of Ricardo," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 44(3), pages 539-545.
    2. Parrinello, Sergio, 2006. "National competitiveness and absolute advantage in a global economy," MPRA Paper 30807, University Library of Munich, Germany.
    3. Enrico Bellino & Saverio M. Fratini, 2022. "Absolute advantages and capital mobility in international trade theory," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 29(2), pages 271-293, March.
    4. Maneschi, Andrea, 2004. "The true meaning of David Ricardo's four magic numbers," Journal of International Economics, Elsevier, vol. 62(2), pages 433-443, March.
    5. Sergio Parrinello, 1988. "“On Foreign Trade” and the Ricardian Model of Trade," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(4), pages 585-601, July.
    6. Christian Gehrke, 2015. "Ricardo's discovery of comparative advantage revisited: a critique of Ruffin's account," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(5), pages 791-817, October.
    7. Gilbert Faccarello, 2015. "A calm investigation into Mr Ricardo's principles of international trade," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(5), pages 754-790, October.
    8. Brewer, Anthony, 1985. "Trade with fixed real wages and mobile capital," Journal of International Economics, Elsevier, vol. 18(1-2), pages 177-186, February.
    9. Roy J. Ruffin, 2002. "David Ricardo's Discovery of Comparative Advantage," History of Political Economy, Duke University Press, vol. 34(4), pages 727-748, Winter.
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    More about this item

    Keywords

    David Ricardo; Comparative advantage; Gains from trade;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance
    • F10 - International Economics - - Trade - - - General

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