Entrepreneurship and Comparative Advantage

Carmen Elena Dorobat and Mihai Vladimir Topan

Journal of Entrepreneurship and Innovation in Emerging Economies, 2015, vol. 24, issue 1, 1-16

Abstract: This article advances a blueprint for understanding the function entrepreneurs perform in international trade, by drawing on the connection between comparative advantage and entrepreneurial judgement. The mutual benefits of specialisation and exchange are demonstrated whenever we find a minimum relative difference between the productivity of resources; however, we argue in this article that the concrete pattern of specialisation—manifest in exchanges between individuals, firms or states—cannot be discovered from outside the market. Rather, comparative advantage has an irreducible entrepreneurial component, and international specialisation is an entrepreneurially driven phenomenon. We explain this by unearthing the connection between entrepreneurship (understood as judgement of the allocation of resources under uncertainty), the heterogeneity of capital and comparative advantage.

Keywords: entrepreneurship; capital; comparative advantage; international trade (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0971355714560036 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jouent:v:24:y:2015:i:1:p:1-16

DOI: 10.1177/0971355714560036

Access Statistics for this article

More articles in Journal of Entrepreneurship and Innovation in Emerging Economies from Entrepreneurship Development Institute of India
Bibliographic data for series maintained by SAGE Publications ().