Some observations regarding the demythification of the comparative advantage’s principle within Manoilescu generalized scheme

Dogaru, Vasile (2005): Some observations regarding the demythification of the comparative advantage’s principle within Manoilescu generalized scheme.

Abstract

The validity in time of the comparative advantage’s principle, also of its application’s denial, can generate certain misunderstandings in the good exchange’s observation for an outsider (common sense), including the expert from other economics’ areas. The resolution for these cases can be made through checking requires’ discharging of the analytical economicity’s principle. In these conditions it can be noticed if the schemes, deducted in the analytical decomposition’s basis of the standard actions, can be used in the more precise and easier measurement than through empirical calculations in order to determine the comparative advantage’s size, of the gains from trade and the productivity effect. Manoilescu generalized scheme has, from this perspective the two main characteristics: its building has started from the empirical reality’s study of the exchange phenomena and the observation has been made only inside the economics’ borders. This way the scheme sustains the unitary explanations’ approaches of some different angles of understanding the comparative advantage on basis of some analytical efforts of other researchers. The suggested scheme separates the strictly economic analysis from the one inside the politic area (commercial politics), also of the productivity effect from more exact connections, decompounding the measurement in two steps. The identification through dialectical judgements, made as a continuation of the analytical ones, of the concordance between the built analytical reality and the empirical one, assures the check of the analytical economy’s principle. This step contributes to the permanent validity’s grounding of the comparative advantage’s principle in the exchange connections within the competitive economies. Meanwhile, the demythification of its full and permanent usage is also supported, in the way of its maximum potential’s capitalization in the manufactured and exchanged goods’ choice. The comparative advantage’s principle is nothing but an application of the minimum effort’s principle – the last one having a wider area of action – and will probably remain in the economies based on the social, competitive, monetary or natural relations.

• Item Type: MPRA Paper
• Language: English
• Keywords: comparative advantage; Manoilescu generalized scheme; measurement; analytical economy principle; minimum effort; total factor productivity; epistemology
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory ; Matching Theory; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics ; Role of Economists ; Market for Economists

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