A critique of modern theories of trade

Uddin, Godwin (2021): A critique of modern theories of trade.

Abstract

This article recapitulates some of the trade theories reputed to be of the twentieth century. Here, the Heckscher-Ohlin theory (with some of its variants), endogenous growth theory, product cycle theory, and new trade theory were considered. This review thereof, amidst others, highlight some of the assumptions of these theories and thus present some critique of the same theories.

• Item Type: MPRA Paper
• Language: English
• Keywords: Trade; Critique; Heckscher-Ohlin theory; endogenous growth theory; product cycle theory; new trade theory
• Subjects: F - International Economics > F0 - General; F - International Economics > F0 - General > F00 - General; F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F10 - General

References

Barro, R. J. (1993). Macroeconomics (Fourth Edition). New York: John Wiley & Sons

Cook, N. P. S., & Jones, J. C. (2015). The African Growth and Opportunity Act (AGOA) and Export Diversification. The Journal of International Trade and Economic Development: An International and Comparative Review. DOI: 10.1080/09638199.2014.986663

Cook, N. P. S., & Jones, J. C. (2020). The African Growth and Opportunity Act (AGOA) and Growth in Sub‐Saharan Africa: A Local Projection Approach. The World Economy. doi:10.1111/twec.12995

Dowling, M. & Cheang, C. T. (2000). Shifting Comparative Advantage in Asia: New Test of the Flying Geese Model. Journal of Asian Economics, 11, 443-463

Ezeala-Harrison, F. (1999). Theory and Policy of International Competitiveness. Westport, Connecticut: Praeger

Krugman, P. & Venables, A. (1993). Integration, Specialisation, and Adjustment. NBER Working Paper No 4559

Krugman, P. R. (1979). Increasing Returns, Monopolistic Competition, and International Trade. Journal of International Economics, 9, 469-479

Krugman, P. R. (1991) Geography and Trade. Cambridge, Mass.: MIT Press

Lam, T. (2015). A Review of Modern International Trade Theories. American Journal of Economics, Finance, and Management 1(6): 604-614

Leichenko, R. M. (2000). Exports, Employment, and Production: A Causal Assessment of U.S. States and Regions. Economic Geography 76(4): 303-325

Martin, R. & Sunley, P. (1998). Slow Convergence? The New Endogenous Growth Theory and Regional Development. Economic Geography, 74, 201-227

Oluwafemi, E. A., Kudratov, K., Oury, B. A., Izuchukwu, O., & Shehu, A. A. (2012). African Growth and Opportunity Act (AGOA) and Economic Community of West African States (ECOWAS) Regional Trade: Challenges and Prospects. Journal of African Studies and Development 4(1): 25-36

Pritchett, L. (2001). Where has all the Education Gone? The World Economic Review, 15(3)

Romer, P. M. (1994). The Origins of Endogenous Growth. Journal of Economic Perspectives, 8, 3-22

Suranovic, S. (2006). International Trade Theory and Policy. Retrieved from http://internationalecon.com/Trade/Tch60/T60-0.php

Tallman, E. W. & Wang, P. (1992). Human Capital Investment and Economic Growth: New Routes in Theory Address Old Questions. Economic Review, September/October, pp. 1-11

Vernon, R. (1966). International Investment and International Trade in the Product Cycle. Quarterly Journal of Economics, 80, 190-207