ISSN:
1432-1386
Keywords:
International trade
;
Standard-lowering competition
;
Capital mobility
;
Steady-state
;
Ecological basis
;
F19
;
F21
;
Q32
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract The author argues against free trade as a “default position” for international trade. He shows that arguments for free trade based on comparative advantage do not hold in reality. First, free trade makes cost-internalization for single countries difficult leading to standard-lowering competition and misallocation. Second, the international mobility of capital leads to absolute rather than comparative advantage for single countries, thus leading to maldistribution. Finally, the ecological basis seriously limits the scope for catching-up. Priority should be given alternatively to domestic production of a steady-state type with balanced trade.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01198310
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