Can Ricardian Model Really Explain Trade?
This paper aims to analyse the international trade in the real world by applying the Ricardian trade theory. In doing this, simple comparative advantage assumptions are used to examine trading of palm oil and rice between Malaysia and Vietnam. By using this theory, it is proven that international t...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UiTM Press
2018-06-01
|
| Series: | Journal of International Business, Economics and Entrepreneurship |
| Subjects: | |
| Online Access: | https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1273 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1846160444599828480 |
|---|---|
| author | Kok Wooi Yap Doris Padmini Selvaratnam |
| author_facet | Kok Wooi Yap Doris Padmini Selvaratnam |
| author_sort | Kok Wooi Yap |
| collection | DOAJ |
| description |
This paper aims to analyse the international trade in the real world by applying the Ricardian trade theory. In doing this, simple comparative advantage assumptions are used to examine trading of palm oil and rice between Malaysia and Vietnam. By using this theory, it is proven that international trade takes place because of efficiency to produce exported product. A country will export products that use its abundant and cheap factors of production and import products that use its scarce factors. Various empirical evidences of previous studies are also used to discuss the importance of the Ricardian model. However, it is also highlighted in the paper that the Ricardian model could be misleading as it has several limitations that restrict its usefulness.
|
| format | Article |
| id | doaj-art-01321f09b3b543e59b24d02e2b77dc38 |
| institution | Kabale University |
| issn | 2550-1429 |
| language | English |
| publishDate | 2018-06-01 |
| publisher | UiTM Press |
| record_format | Article |
| series | Journal of International Business, Economics and Entrepreneurship |
| spelling | doaj-art-01321f09b3b543e59b24d02e2b77dc382024-11-22T07:20:47ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292018-06-0131Can Ricardian Model Really Explain Trade?Kok Wooi Yap0Doris Padmini Selvaratnam1Faculty of Economics and Management, The National University of Malaysia, Selangor, MalaysiaFaculty of Economics and Management, The National University of Malaysia, Selangor, Malaysia This paper aims to analyse the international trade in the real world by applying the Ricardian trade theory. In doing this, simple comparative advantage assumptions are used to examine trading of palm oil and rice between Malaysia and Vietnam. By using this theory, it is proven that international trade takes place because of efficiency to produce exported product. A country will export products that use its abundant and cheap factors of production and import products that use its scarce factors. Various empirical evidences of previous studies are also used to discuss the importance of the Ricardian model. However, it is also highlighted in the paper that the Ricardian model could be misleading as it has several limitations that restrict its usefulness. https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1273Comparative advantage, free trade, international trade, Ricardian model |
| spellingShingle | Kok Wooi Yap Doris Padmini Selvaratnam Can Ricardian Model Really Explain Trade? Journal of International Business, Economics and Entrepreneurship Comparative advantage, free trade, international trade, Ricardian model |
| title | Can Ricardian Model Really Explain Trade? |
| title_full | Can Ricardian Model Really Explain Trade? |
| title_fullStr | Can Ricardian Model Really Explain Trade? |
| title_full_unstemmed | Can Ricardian Model Really Explain Trade? |
| title_short | Can Ricardian Model Really Explain Trade? |
| title_sort | can ricardian model really explain trade |
| topic | Comparative advantage, free trade, international trade, Ricardian model |
| url | https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1273 |
| work_keys_str_mv | AT kokwooiyap canricardianmodelreallyexplaintrade AT dorispadminiselvaratnam canricardianmodelreallyexplaintrade |