We develop a two-country, two-sector model of trade where the only difference between the two countries is their distribution of human capital endowments. We show that even if the two countries have identical aggregate human capital endowments the pattern of trade depends on the properties of...

Following a brief historical introduction and a discussion of different types of commercial policy, this paper reviews the arguments for and against trade protection. In the bench-mark case of a competitive, small, open economy, free trade maximizes aggregate national welfare, although some...

The theory of comparative advantage says that there are gains from trade for the global economy as a whole. In this second brief of a three-part study of the international economy, Research Associate Thomas Palley observes that comparative advantage is driven by technology, which can be...

Today’s global world is characterized not only by a high volume ofinternational trade and foreign investment relativeto national income, but also by a changed composition of that tradetowards a greater fraction of trade in inputs andcapital goods and outsourcing of production.. Emphasized is...

Im ifo Schnelldienst 9/2017 wurde Ricardos bahnbrechende Leistungen für die moderne Volkswirtschaftslehre gewürdigt. Wolfram F. Richter, Technische Universität Dortmund, setzt sich in seinem Kommentar mit dem Zahlenbeispiel in Ricardos Theorie komparativer Kosten auseinander und fragt, wie...

Gabriel Felbermayr zeigt, wie Ricardos Modell für eine modere handelspolitische Beratung genutzt werden kann.