Comparative advantage, economic growth and free trade

Gallardo, Julio López

doi:10.1590/s1415-98482005000200004

Cited by 11 publications

(10 citation statements)

References 8 publications

(6 reference statements)

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“…That means a country should specialize and concentrate in producing those products where it has comparative advantage and export them (Salvatore, 1998). This study has been supported by many studies including Grossman and Helpman (1990), Gallardo (2005) and Riaz (2010). Unlike trade specialization theory of Richardo, many studies advocated trade diversification.…”

supporting

confidence: 73%

Agricultural Trade Diversity of India with Asean

Choubey¹

2019

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The ASEAN is India's fourth-largest trading partner after the EU, the US and China. Considering the significance of trade relation between India and ASEAN, the present study has been conducted with an objective to analyse the diversity in agricultural trade between India and ASEAN nations. The study has incorporated HS-2 digit codes to classify agricultural products and selected products falling under 01 to 24 chapters, which are agricultural products. Time series data of trade from 2001 to 2015 has been used in the present analysis. To see the importance of ASEAN as a major trading partner, shares of India's trade with ASEAN relative to world has been computed. It is apparent from the result that India's import from ASEAN is more than its export for the entire period. Simpsons Index of Diversity has been used to know the degree of diversification in agricultural trade between the two trading partners. The findings concluded that India exports of agricultural products are comparatively diversified with ASEAN compared to its import. The result suggests that there is stability in agriculture export earnings of India from ASEAN which in long run can contribute to the Economic growth. Highlightsm India exports of agricultural products are diversified with ASEAN compared to its import which leads to stability in income earning for economic growth.

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supporting

confidence: 73%

Agricultural Trade Diversity of India with Asean

Choubey¹

2019

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“…In an attempt to explain what makes a country more successful in trade, most Economists, instead of analyzing only comparative advantage, focus on a narrower application of Ricardo's theory and analyse international trade relations through revealed comparative advantage (RCA) (Balassa, 1965;Laursen, VOLUME Brakman & Van Marrewijk, 2017). While larger countries need less specialization due to their greater resources, specialization, according to the theory of comparative advantage, still benefits a country by pushing it to use its resources, and to produce and trade, in accordance with its comparative advantage (Gallardo, 2005;Acharya, 2008).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Comparative advantage as a success factor in football clubs: Evidence from the English Premier League (EPL)

Georgievski

Labadze

AboElsoud

2019

jhse

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As in international trade, football clubs can benefit more if they specialize in what they have or can create comparative advantage. In a world of scarce resources, clubs need to identify what makes them successful and invest accordingly. The main objective of this study is to understand what influences the success of football teams in the English Premier League (EPL) championship games. Based on Ricardo's model of comparative advantage and applying Factor analysis as well as Panel data approach, this study investigates the need for specialization and tradeoffs between defensive and offensive patterns of the game in order for EPL clubs to be more successful. The data used in this study covers the period 2010-2017 of the EPL data. The results reveal that, in general, a better defense is slightly more important for success. The outcomes were different for the top-and bottom-ranking clubs. We found that it is more important for bottom-ranking teams to play better defensively than offensively, while for top-performing teams, the probability of success is more affected by offensive style. In addition, there is a tradeoff between these two styles of play; when bottom-ranking teams try to play better defensively, it often comes at the expense of a poor offensive pattern, but almost no one plays offense at the expense of a poor defense. Unlike the bottom-ranking teams, the topranking teams did not face tradeoffs, but they were able to improve both their defensive and offensive patterns. The recommendation put forward by this study argue that bottom-ranking clubs should specialize

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“…In economic theory, comparative advantage is an enterprise’s ability to produce goods or services with less opportunity cost – or benefits lost by expending resources to produce one good compared to another. Comparative advantage at the national level may derive from the differences in natural resources or from differences in society, culture or institutions, and a country will benefit if it specializes in the production of goods whose manufacture is intensive in its abundant resources (Gallardo, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

“…David Ricardo, the economist, created the theory of comparative advantage in the eighteenth century which became the rationale for free trade agreements. He created the theory with the argument that a nation boosts its economic growth the most by focusing on the industry in which it has the most substantial comparative advantage (Gallardo, 2005; Morales Meoqui, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Comparative advantage of Ethiopian textile and apparel industry

Rundassa

Azene

Berhan

2019

RJTA

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Purpose Ethiopia’s economy is primarily based on agriculture, but starting form 2010, the government has been determined to diversify the exports with a priority set for strategic sectors like light manufacturing in which textile and apparel manufacturing industries are included. The purpose of this paper is to measure the comparative advantages of the Ethiopian textile and apparel industry using the revealed comparative advantage (RCA) in the period from 2007 to 2016. Design/methodology/approach For the purpose of the paper, secondary data were collected from the UN comtrade site, and related data sources were cited in the literature review for the purpose of triangulation (cross-checking of the analysis with theoretical background). From the theoretical background, the two indices of RCA (Balassa index and Lafay index) were used for the evaluation of the industries’ competitive advantage and to identify which industry (textiles or apparel) was of more importance in the country. Findings The findings of the study showed that Ethiopia was more competitive in the textile sector. However, and with reference to the Lafay index, the country has been focusing on apparel sector, because of the opportunities for job creation. Research limitations/implications For the purpose of this study, secondary data were used and the general conclusions are limited to the corresponding sources of data. Practical implications Because of the labor-intensive nature, the textile and apparel sector has been one of the areas promoted by the Ethiopian Government in its industrialization policy. The finding of this paper can be used by policy makers to evaluate the competitiveness of the country. Social implications The findings can be used to assess social upgrading issues in the textile and apparel sector. Originality/value The work is the first of its kind in the sector as well as the country.

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Comparative advantage, economic growth and free trade

Cited by 11 publications

References 8 publications

Agricultural Trade Diversity of India with Asean

Agricultural Trade Diversity of India with Asean

Comparative advantage as a success factor in football clubs: Evidence from the English Premier League (EPL)

Comparative advantage of Ethiopian textile and apparel industry

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