International Exchange of Goods and Services

Carlos M. Peláez and Carlos A. Peláez

Chapter 6 in Globalization and the State: Volume I, 2008, pp 157-198 from Palgrave Macmillan

Abstract: Abstract The analysis of the gains from trade began in modern economics with Smith (1776) and Ricardo (1817). In a rare consensus, economists tend to agree that there are benefits from trade in the form of more efficient resource allocation. The first section below provides the important analysis of the gains from trade. The relaxation of the conditions of the first best of efficiency leads to the analysis of distortions or market failures that motivate more analysis. The main principle is to correct domestic distortions with domestic policy instruments to permit the economy to obtain the benefits from trade. It is difficult to relate empirically trade openness and economic growth.

Keywords: Trade Policy; Skilled Labor; Unskilled Worker; Unskilled Labor; Relative Wage (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-22828-3_7

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DOI: 10.1057/9780230228283_7

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