Abstract
This article traces the evolution of the theory of comparative advantage and the gains from trade from the pioneering work of David Ricardo to the factor proportions approach of Eli Heckscher and Bertil Ohlin. Extensions of the basic models to many goods, factors and countries, and to the long run are noted, as well as the attempts at empirical testing of the predictions derived from them.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Burgstaller, A. 1986. Unifying Ricardo’s theories of growth and comparative advantage. Economica 53: 467–481.
Davis, D.R., and D.E. Weinstein. 2001. An account of global factor trade. American Economic Review 91: 1423–1453.
Deardorf, A. 1984. Testing trade theories. In Handbook of international economics, ed. R.W. Jones and P.B. Kenen, vol. 1. Amsterdam: North-Holland.
Dombusch, R., S. Fischer, and P.A. Samuelson. 1977. Comparative advantage, trade and payments in a Ricardian model with a continuum of goods. American Economic Review 67: 823–839.
Emmanuel, A. 1972. Unequal exchange. New York: Monthly Review Press.
Ethier, W. 1984. Higher dimensional issues in trade theory. In Handbook of international economics, ed. R.W. Jones and P.B. Kenen, vol. 1. Amsterdam: North-Holland.
Feenstra, R.C. 2004. Advanced international trade. Princeton: Princeton University Press.
Findlay, R. 1970. Factor proportions and comparative advantage in the long run. Journal of Political Economy 78: 27–34.
Findlay, R. 1974. Relative prices, growth and trade in a simple Ricardian system. Economica 41: 1–13.
Findlay, R. 1978. An ‘Austrian’ model of international trade and interest equalization. Journal of Political Economy 86: 989–1007.
Findlay, R. 1982. International distributive justice. Journal of International Economics 13: 1–14.
Findlay, R. 1984. Growth and development in trade models. In Handbook of international economics, ed. R.W. Jones and P.B. Kenen, vol. 1. Amsterdam: North-Holland.
Findlay, R. 1995. Factor proportions, trade, and growth. Cambridge, MA: MIT Press.
Findlay, R., and H. Kierzkowski. 1983. International trade and human capital: A simple general equilibrium model. Journal of Political Economy 91: 957–978.
Graham, F. 1948. The theory of international values. Princeton: Princeton University Press.
Grossman, G.M., and E. Helpman. 1991. Innovation and growth in the global economy. Cambridge, MA: MIT Press.
Gruen, F., and W.M. Corden. 1970. A tariff that worsens the terms of trade. In Studies in international economics, ed. I.A. MacDougall and R. Snape. Amsterdam: North-Holland.
Haberler, G. 1933. The theory of international trade. Trans. A. Stonier and F. Benham. London: W. Hodge, 1936; revised edn, 1937.
Harrigan, J. 1997. Technology, factor supplies and international specialization: Estimating the neoclassical model. American Economic Review 87: 475–494.
Heckscher, E. 1919. The effects of foreign trade on the distribution of income. In Ekonomisk Tidskrift. English translation in Readings in the Theory of International Trade, ed. H.S. Ellis and L.A. Metzler. Philadelphia: Blakiston, 1949.
Helpman, E., and P. Krugman. 1985. Market structure and foreign trade. Cambridge, MA: MIT Press.
Jones, R.W. 1956. Factor proportions and the Heckscher–Ohlin theorem. Review of Economic Studies 24: 1–10.
Jones, R.W. 1961. Comparative advantage and the theory of tariffs. Review of Economic Studies 28: 161–175.
Jones, R.W. 1965. The structure of simple general equilibrium models. Journal of Political Economy 73: 557–572.
Jones, R.W. 1971. A three-factor model in theory, trade and history. In Trade, balance of payments, and growth, ed. J. Bhagwati et al. Amsterdam: North-Holland.
Jones, R.W., and P. Neary. 1984. Positive trade theory. In Handbook of international economics, ed. R.W. Jones and P.B. Kenen, vol. 1. Amsterdam: North-Holland.
Kantorovich, L. 1965. The best use of economic resources. Cambridge, MA: Harvard University Press.
Kenen, P.B. 1965. Nature, capital and trade. Journal of Political Economy 73: 437–460; Erratum, December, 658.
Krugman, P.R. 1979. Increasing returns, monopolistic competition and international trade. Journal of International Economics 9: 469–479.
Lancaster, K.J. 1980. Intra-industry trade under perfect monopolistic competition. Journal of International Economics 10: 151–175.
Leamer, E.P. 1984. Sources of international comparative advantage: Theory and evidence. Cambridge, MA: MIT Press.
Lemer, A.P. 1952. Factor prices and international trade. Economica 19: 1–15.
Leontief, W.W. 1933. The use of indifference curves in the analysis of foreign trade. Quarterly Journal of Economics 47: 493–503.
Leontief, W.W. 1954. Domestic production and foreign trade: The American capital position re-examined. Economia Internazionale 7: 9–38.
Lerner, A.P. 1932. The diagrammatic representation of cost conditions in international trade. Economica 12: 345–356.
Lerner, A.P. 1952. Factor prices and international trade. Economica 19: 1–15.
MacDougall, G.D.A. 1951. British and American exports. Economic Journal 61: 697–724.
McKenzie, L.W. 1954. Specialization and efficiency in world production. Review of Economic Studies 21 (3): 165–180.
Ohlin, B. 1933. Inter-regional and international trade. Cambridge, MA: Harvard University Press.
Oniki, H., and H. Uzawa. 1965. Patterns of trade and investment in a dynamic model of international trade. Review of Economic Studies 32: 15–38.
Pasinetti, L. 1960. A mathematical formulation of the Ricardian system. Review of Economic Studies 27: 78–98.
Ricardo, D. 1951. The works and correspondence of David Ricardo, ed. P. Sraffa. vols. 1 and 4. Cambridge: Cambridge University Press.
Samuelson, P.A. 1948. International trade and the equalization of factor prices. Economic Journal 58: 163–184.
Samuelson, P.A. 1949. International factor price equalization once again. Economic Journal 59: 181–197.
Samuelson, P.A. 1950. Evaluation of real national income. Oxford Economic Papers 2: 1–29.
Samuelson, P.A. 1953. Prices of factors and goods in general equilibrium. Review of Economic Studies 21: 1–20.
Samuelson, P.A. 1962. The gains from international trade once again. Economic Journal 72: 820–829.
Samuelson, P.A. 1965. Equalization by trade of the interest rate along with the real wage. In Trade, growth and the balance of payments, ed. R. Baldwin et al. Chicago: Rand McNally.
Samuelson, P.A. 1971. Ohlin was right. Swedish Journal of Economics 73: 365–384.
Steedman, I. 1979a. Trade amongst growing economies. Cambridge: Cambridge University Press.
Steedman, I., ed. 1979b. Fundamental issues in trade theory. London: Macmillan.
Stiglitz, J. 1970. Factor–price equalization in a dynamic economy. Journal of Political Economy 78: 456–488.
Stolper, W., and P.A. Samuelson. 1941. Protection and real wages. Review of Economic Studies 9: 58–73.
Trefler, D. 1995. The case of missing trade and other mysteries. American Economic Review 85: 1029–1046.
Vanek, J. 1963. The natural resource content of U.S. Foreign trade 1870–1955. Cambridge, MA: MIT Press.
Viner, J. 1937. Studies in the theory of international trade. New York: Harper.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Findlay, R. (2018). Comparative Advantage. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_67
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_67
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences