International Trade Theory : A Comparison Between Three Schools of Thought

This paper critically compares three different theorisations of trade, based on the factoral, Heckscher-Ohlin-Samuelson model (Rogowski, 1987), the sectoral, Ricardo-Viner model (Hiscox, 2001), and the firm-related, New Trade Theory model (Baccini et al., 2017). Indeed, all three papers seek to explain why some interest groups favour trade openness while others lobby for protectionism. Respectively, each article found the explanation in the differences in the factor-endowments between different social groups, in the domestic factor mobility (which can increase the importance of industrial-sectoral disparities), or in the level of individual firm international competitiveness. Although both the theorisation background and the research design differ between the analysed papers, I argue that, in the end, these contributions are an integral part of a bigger vision that aid researchers to assess which groups and to what extent they influence the policy-making process in contemporary democracies. Finally, I noted the significant contribution by the micro-level New Trade Theory: the winners of trade liberalisation are not diffuse as presumed by macro-level analyses but highly concentrated