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


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.


Item Type: Article
Email / ID Num.
Kok, Wooi Yap
Selvaratnam, Doris Padmini
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)
UiTM Journal Collections: UiTM Journal > Journal of International Business, Economics and Entrepreneurship (JIBE)
ISSN: 2550-1429
Volume: 3
Number: 1
Page Range: pp. 21-29
Keywords: Comparative advantage, free trade, international trade, Ricardian model
Date: 2018
Edit Item
Edit Item


[thumbnail of 28930.pdf] Text

Download (500kB)

ID Number




Statistic details