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Free Trade in a World of Internationally Mobile Technology: The Orthodoxy Then and Now

Author

Listed:
  • Bruce Elmslie

    (University of New Hampshire)

Abstract

In a recent paper, Kemp and Shimomura extend the basic Heckscher-Ohlin model to show that no country has an incentive to hoard its technology. This basic result is not new. It was first shown by William Ellis in 1825. Ellis extended Ricardo's model to obtain the same free trade result. The history behind these similar theoretical developments is remarkably similar. These writers were responding to increased debates over the benefits of free trade when technologies are mobile between countries. The most widely accepted theoretical models of the time were extended so that policy discussions could be grounded in a strong theoretical base.

Suggested Citation

  • Bruce Elmslie, 1993. "Free Trade in a World of Internationally Mobile Technology: The Orthodoxy Then and Now," Eastern Economic Journal, Eastern Economic Association, vol. 19(1), pages 91-97, Winter.
    • Handle: RePEc:eej:eeconj:v:19:y:1993:i:1:p:91-97
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume19/V19N1P91_97.pdf
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    More about this item

    Keywords

    Free Trade; Heckscher Ohlin; Technology; Trade;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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