Chapter 4 Links to seminal articles

Chapter 4 Links to seminal articles

Links to seminal articles as highlighted in the Research Insights features in the book, with commentary.

  1. Seminal articles
  • Theory of absolute advantage

Smith, A. (1976 [1776]) An Enquiry into the Nature and Causes of the Wealth of Nations, R.H. Campbell, A.S. Skinner, and W.B. Todd (eds), Oxford: Oxford University Press.

  • Theory of comparative advantage

Ricardo, D. (1817) The Principles of Political Economy and Taxation, London: Dent.

  • Heckscher-Ohlin model

Heckscher, E. (1919) ‘The effects of foreign trade on the distribution of income’, Ekonomisk Tidskrift, 21: 497–512.

Ohlin, B. (1933) Interregional and International Trade, Cambridge, MA: Harvard University Press.

Samuelson, P.A. (1953) ‘Prices of factors and goods in general equilibrium’, Review of Economic Studies, 21(1): 1–20.

  • Technological change and international trade

Posner, M.V. (1961) ‘International trade and technical change’, Oxford Economic Papers, 13(3): 323–341.

  • Product cycle model

Vernon, R. (1966) ‘International investment and international trade in the product cycle’, Quarterly Journal of Economics, 80(2): 190–207.

  • Competitive advantage of nations

Porter, M.E. (1990) The Competitive Advantage of Nations, New York: Free Press.

  • Foreign direct investment

Hymer, S.H. (1976 [1960]) The International Operations of National Firms: A Study of Direct Foreign Investment., Cambridge, MA: MIT Press.

Dunning, J.H. (1973) ‘The determinants of international production’, Oxford Economic Papers, 25(3): 289–336.

 

  1. Reviewed articles on international trade theories

Davies, H. and Ellis, P. (2000) ‘Porter’s competitive advantage of nations: time for the final judgement?’, Journal of Management Studies, 37(8): 1189-1213.

Markusen, J.R. (1995) ‘The boundaries of multinational enterprises and the theory of international trade’, American Economic Association, 9(2): 169-189.

Morgan, R.E. (1997) ‘Theories of international trade, foreign direct investment and firm internationalization: a critique’, Management Decision, 35(1): 68-78.

Prasch, R.E. (1996) ‘Reassessing the theory of comparative advantage’, Review of Political Economy, 8(1):37-55.

 

Commentary

The reviewed articles provide summary and relevant discussions on the theories of international trade. Read these articles and attempt to answer the following questions.

  • Which theory of international trade do you most agree with? Why do you think that specific theory can explain international trade better than the others? Are there any limitations to that theory? 
  • In your opinion, can theory of international trade developed in advanced economies explain the growth of international trade from emerging countries, such as China or India? Is there any limitation to applying these international trade theories in the context of emerging economies?
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