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).
|Publisher||Centro Sraffa Working Papers|
|Number of pages||28|
|Publication status||Published - 2019|
- absolute advantage
- capital mobility