The general validity of comparative advantage in trade exchanges

Dogaru, Vasile (2005): The general validity of comparative advantage in trade exchanges. Published in: Romanian Economic Review , Vol. 49-50, No. 2004-2005 (2005): pp. 171-198.

Abstract

In a recent article, Alan Deardorff (2005) analyses the strength of the comparative advantage’s principle. The present article’s purpose is to follow the generalization of some recent results (Dogaru, 2000; 2005b) and also to sustain the unification’s necessity of some comparative advantage’s presentation drafts, in the analytical economy’s basis. This way the statement of real assumptions inside economics can be assured, connected to processes developed in an extended economic time and space. From this perspective comparative advantage’s analysis is necessary due to the existence of the tendency in which once with some new instruments’ creations, usually more formal and using a mathematical instrument more sophisticated, the validity of comparative advantage’s classic principle would be denied. The idea of introducing the validity of the comparative advantage’s principle in the trade exchanges – considered by Samuelson versus Stanislaw Ulam an accepted truth by all economists (and not only) as being un undemonstrated one – is not a productive one from an analytical point of view, which could contribute to the economics’ development.

• Item Type: MPRA Paper
• Language: English
• Keywords: comparative advantage; production possibilities frontier; Manoilescu; Mises; cooperation law; individual/national interest; equity principle; analytical economicity
• Subjects: D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory ; Matching Theory; D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development; A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics ; Role of Economists ; Market for Economists

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