Absolute Advantages and Capital Mobility in International Trade Theory

Enrico Bellino, Saverio Fratini

Research output: Working paper

Abstract

In this paper we will focus upon the role of absolute advantages in international special-ization in connection with the phenomenon of capital mobility. We will provide a his-torical and analytical reconstruction of the main contributions, starting from the contrast between Smith’s and Ricardo’s standpoint on the issue. Two deep-rooted conclusions will be questioned by the analysis of this literature: (a) the unequivocal mutual benefits of opening up to international trade; and (b) the specialization of each country in the production of at least one good. With regard to this point, we will also provide a gener-alization of a result obtained by Parrinello (2010).
Original languageEnglish
PublisherCentro Sraffa Working Papers
Number of pages28
Publication statusPublished - 2019

Keywords

  • absolute advantage
  • capital mobility
  • specialization

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