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

Mariolis, Theodore (2010): A neo-Ricardian critique of the traditional static theory of trade, customs unions and common markets.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: common markets; customs unions; free trade; neo-Ricardian theory; traditional static theory
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B51 - Socialist ; Marxian ; Sraffian; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis

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