Topic
Absolute advantage
About: Absolute advantage is a research topic. Over the lifetime, 217 publications have been published within this topic receiving 7119 citations.
Papers published on a yearly basis
Papers
TL;DR: This article developed a Ricardian trade model that incorporates realistic geographic features into general equilibrium and delivered simple structural equations for bilateral trade with parameters relating to absolute advantage, comparative advantage, and geographic barriers.
Abstract: We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it) We estimate the parameters with data on bilateral trade in manufactures, prices, and geography from 19 OECD countries in 1990 We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction
5,010 citations
Posted Content•
TL;DR: In this paper, the authors argue that no efficient, automatic mechanism like currency devaluation or prompt flexibility of wages and prices may grant each territory some role in the inter-national division of labour, whatever its relative performance.
Abstract: In a globalising economy, territories and not just firms increasingly find themselves in competition with each other. In fact, differently from the case of countries, cities and regions compete, on the international market for goods and production factors, on the basis of an absolute advantage principle, and not of a comparative advantage principle; this means that no efficient, automatic mechanism like currency devaluation or prompt flexibility of wages and prices - may grant each territory some role in the inter-national division of labour, whatever its relative performance. Competitiveness of territories emerges as a central issue, in order to secure employment stability, benefits from external integration, continuing growth of local wellbeing and wealth. The arguments put forward by Paul Krugman, defining the concept of competitiveness wrong and misleading, cannot be accepted in a territorial 'regional and urban' context.
572 citations
TL;DR: In this article, a simple theory of international trade with en- dogenous technological dierences across countries is proposed, where the core of the analysis lies in the determinants of the division of labor.
408 citations
TL;DR: In this article, the authors developed a theoretical model of supply chains in which the measure of tasks completed within a firm is determined by parameters that define transaction costs and the cost of coordinating more activities within the firm.
172 citations
TL;DR: In this article, the authors investigated the relationship between agglomeration and specialization, and the role of comparative versus absolute advantage, and developed a two-country three-sector model.
134 citations
Related Topics (5)
Performance Metrics
| Year | Papers |
|---|---|
| 2021 | 8 |
| 2020 | 9 |
| 2019 | 6 |
| 2018 | 7 |
| 2017 | 6 |
| 2016 | 7 |