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 | ||||||
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| Creators: |
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| 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) |
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| 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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