An antinomy in the theory of comparative advantage

Drabicki, John Z.; Takayama, Akira

doi:10.1016/0022-1996(79)90004-7

Cited by 26 publications

(9 citation statements)

References 6 publications

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“…The status quo and the post‐union prices for the member countries of the union can be considered as the autarkic and free trade prices of the subeconomy, respectively. The free trade equilibrium prices may not lie between the autarkic prices of the two countries, even if GS is assumed (Drabicki and Takayama (1979)). However, it can be shown that for goods with the largest price differences across countries, their post‐union relative prices must be bounded by their status quo prices of the members.…”

Section: Three‐good Casesmentioning

confidence: 99%

“…Gross substitutability is a common assumption in general equilibrium comparative static analysis, and it can be used to analyse the change in prices resulting from complete elimination of tariffs within the customs union, which is a discrete change. It is well known that when there are more than two goods, the trading equilibrium prices need not lie between the autarkic prices of the two trading countries even if the excess demand function exhibits gross substitutability (Drabicki and Takayama 1979). However, it is possible to derive some interesting results if we are willing to impose some more structure in the model.…”

Section: Introductionmentioning

confidence: 99%

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The adjustment of external tariffs in the Kemp‐Wan‐Grinols compensation scheme

Wong

2006

Canadian J of Economics

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This paper considers the adjustment of external tariffs when two countries integrate and implement the Kemp-Wan-Grinols compensation scheme. Attention is also paid to the restrictions set by Article XXIV of GATT. This paper shows how the external tariffs would change in a three-good, three-country model under the assumption of gross substitutability. The results are sensitive to the initial trade pattern. In particular, they depend on the number of goods initially traded between the member countries. The analysis can be extended to a multi-commodity model if the preferences of the countries have identical CES representation. JEL classification: F11, F15L'ajustement des tarifs douaniers avec le monde exte´rieur dans le sche`me de compensation a`la Kemp-Wan-Grinols. Ce me´moire examine l'ajustement des tarifs avec le monde exte´rieur quand deux pays forment un tout e´conomique inte´gre´et mettent en place un sche`me de compensation a`la Kemp-Wan-Grinols. On prend en compte les restrictions impose´es par l'article XIV du GATT. On indique comment les tarifs avec le monde exte´rieur changeraient dans un mode`le a`trois pays et trois biens quand on postule un degre´ge´ne´ral de substituabilite´. Les re´sultats de´pendent du pattern initial de commerce : en particulier, ils de´pendent du nombre de biens initialement e´change´s entre les pays membres. L'analyse peut eˆtre ge´ne´ralise´e a`un mode`le a`plusieurs biens si les pre´fe´rences des pays ont une repre´sentation CES identique.

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Section: Three‐good Casesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The adjustment of external tariffs in the Kemp‐Wan‐Grinols compensation scheme

Wong

2006

Canadian J of Economics

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“…First, applying the law of comparative advantage in a higher dimension than the 2 × 2 × 2 world is difficult; see Drabicki and Takayama (1979) and Dixit and Norman (1980). We therefore refer to the general law of comparative advantage suggested by Deardorff (1980).…”

Section: B Difficulties In Testing the Law Of Comparative Advantagementioning

confidence: 99%

Trade Patterns Among Industrial Countries: Their Relationship to Technology Differences and Capital Mobility

Saito

2004

IMF Working Papers

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“…This invites questions of whether the results derived from such models generalize meaningfully to situations where there are more, and perhaps unequal numbers of, factors and goods. This has been a major area of work for Japanese trade-theorists and important contributions examining the conditions under which trade-theoretic results generalize have been Inada (1967), Kemp and Wegge (1969a,b), Uekawa (1971Uekawa ( , 1984, Uekawa et al (1973), Inada (1971), Otani (1973), Drabicki andTakayama (1979), Yano (1981), Inoue (1981), Inoue and Wegge (1986) and Minabe (1995). Komiya (1967) considered the consequences of adding a non-traded good to the model.…”

Section: Dimensionalitymentioning

confidence: 99%

Japanese Contributions to the Theory of International Trade

Oslington

2000

Japanese Econ Rev

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This paper outlines a number of signi®cant Japanese contributions to the theory of international trade in the postwar period, and identi®es some of their characteristic topics and methods. It then seeks to explain these characteristics, with reference to Japan's intellectual and cultural heritage, its pressing national priorities, and the situation of the Japanese economist within Japanese society and the economics profession internationally. It is argued that despite these common characteristics we cannot speak meaningfully of a Japanese school of trade theory, although there is a characteristically Japanese approach to trade policy. Finally, some reasons for the neglect of Japanese contributions are explored. JEL Classi®cation Numbers: B20, F19.

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An antinomy in the theory of comparative advantage

Cited by 26 publications

References 6 publications

The adjustment of external tariffs in the Kemp‐Wan‐Grinols compensation scheme

The adjustment of external tariffs in the Kemp‐Wan‐Grinols compensation scheme

Trade Patterns Among Industrial Countries: Their Relationship to Technology Differences and Capital Mobility

Japanese Contributions to the Theory of International Trade

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