Capital mobility has the potential of undermining the validity of Ricardo’s theory of comparative advantage. Within this context, the tendency towards a uniform rate of profit makes absolute costs relevant for the analysis of specialisation patterns. A historical and analytical reconstruction is presented of a few significant contributions addressing this point, with a particular focus on the possibility of exclusion from trade and production “desertification” caused by a country’s low profitability of capital. A generalisation of a result obtained by Parrinello is provided.

Bellino, E., Fratini, S.M. (2022). Absolute advantages and capital mobility in international trade theory. EUROPEAN JOURNAL OF THE HISTORY OF ECONOMIC THOUGHT, 29(2), 271-293 [10.1080/09672567.2021.1967418].

Absolute advantages and capital mobility in international trade theory

Bellino E.;Fratini S. M.
2022-01-01

Abstract

Capital mobility has the potential of undermining the validity of Ricardo’s theory of comparative advantage. Within this context, the tendency towards a uniform rate of profit makes absolute costs relevant for the analysis of specialisation patterns. A historical and analytical reconstruction is presented of a few significant contributions addressing this point, with a particular focus on the possibility of exclusion from trade and production “desertification” caused by a country’s low profitability of capital. A generalisation of a result obtained by Parrinello is provided.
Bellino, E., Fratini, S.M. (2022). Absolute advantages and capital mobility in international trade theory. EUROPEAN JOURNAL OF THE HISTORY OF ECONOMIC THOUGHT, 29(2), 271-293 [10.1080/09672567.2021.1967418].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/391604
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