Comparative advantage, economic growth and free trade

Authors

  • Julio Lopez Gallardo UNAM, México

Keywords:

comparative advantage, trade, growth

Abstract

The paper has two objetives. The first is to discuss whether developing countries can benefit by specializing according to their comparative advantage. The second objetive is to discuss if an economy that adopts a free market policy will in effect achieve greater economic efficiency. The author concludes that specialization according to comparative advantage would indeed benefit a country. He also argues that in an economy ruled by free competition and without governmental interference, market signals and forces and not by themselves sufficient to provide the necessary incentives to producers so that they fully use the avaliable resources, and produce and trade according to comparative advantage. 

Published

2018-08-28

Issue

Rev. Econ. Contemp., v. 9, n. 2, mai./ago. 2005

Section

Artigos

License

The Revista de Economia Contemporânea (Journal of Contemporary Economics) adopted the Creative Commons license attribution-type BY-NC until April/2015. The license attribution-type BY has been adopted ever since.

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