Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam

Kok, Wooi Yap and Selvaratnam, Doris Padmini (2018) Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam. Journal of International Business, Economics and Entrepreneurship (JIBE), 3 (1). pp. 21-29. ISSN 2550-1429

Abstract

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.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Kok, Wooi Yapyapkokwooiukm@gmail.com
Selvaratnam, Doris PadminiUNSPECIFIED
Subjects: H Social Sciences > HA Statistics > Theory and method of social science statistics > Data envelopment analysis
H Social Sciences > HB Economic Theory. Demography > Consumption. Demand (Economic theory)
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Journal of International Business, Economics and Entrepreneurship (JIBE)
ISSN: 2550-1429
Volume: 3
Number: 1
Page Range: pp. 21-29
Item ID: 28930
Uncontrolled Keywords: Comparative advantage, free trade, international trade, Ricardian model
URI: http://ir.uitm.edu.my/id/eprint/28930

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