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- Title
First- and Second-Best Factor Comparative Advantages and International Trade.
- Authors
Ruffin, Roy J.
- Abstract
In a Ricardian factor endowment model with different technologies, trade is determined by the location of the factors with first- and second-best comparative advantages as well as world demand. When both technology factor endowment differences between countries explain trade, the usual empirical strategy of running regressions of trade against factor endowments is inadequate. Trade is explained by the synergistic combination of factor endowments, technology differences and world demand. Indeed, under various parametric situations the various elements play quite different roles.
- Subjects
INTERNATIONAL trade; INVESTMENTS; COMPARATIVE advantage (International trade); PERFECT competition; HECKSCHER-Ohlin principle; ECONOMICS
- Publication
Economica, 1992, Vol 59, Issue 236, p453
- ISSN
0013-0427
- Publication type
Article
- DOI
10.2307/2554890