Smith's and Ricardo's common logic of trade

Jorge Morales Meoqui

MPRA Paper from University Library of Munich, Germany

Abstract: Ricardo essentially adhered to the logic of trade that Smith formulated in the Wealth of Nations. The contrary notion that they had opposing logics of trade is the result of an inaccurate interpretation of Ricardo’s numerical demonstration of the comparative-advantage proposition in chapter seven of the Principles. A deeper understanding of this numerical demonstration also leads to a partial refutation of the familiar contraposition between the comparative-advantage proposition and the absolute cost advantage theory of trade.

Keywords: comparative advantage; absolute cost advantage; Ricardian model; international trade theory; free trade (search for similar items in EconPapers)
JEL-codes: B12 (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-his, nep-hpe and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/27143/1/MPRA_paper_27143.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/39406/2/MPRA_paper_39406.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/41442/1/MPRA_paper_41442.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/43228/1/MPRA_paper_43228.pdf revised version (application/pdf)

Related works:
Journal Article: Reconciling Ricardo's Comparative Advantage with Smith's Productivity Theory (2014)
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