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Is Trade In Technology Superior To Trade In Goods?

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  • Sugata Marjit
  • Hamid Beladi

Abstract

Using a Ricardian setting we argue that trade in technology generates higher global welfare relative to trade in goods. Hence, free trade in commodities can only be the second best outcome for the world welfare.

Suggested Citation

  • Sugata Marjit & Hamid Beladi, 2009. "Is Trade In Technology Superior To Trade In Goods?," Bulletin of Economic Research, Wiley Blackwell, vol. 61(2), pages 195-200, April.
    • Handle: RePEc:bla:buecrs:v:61:y:2009:i:2:p:195-200
    DOI: 10.1111/j.1467-8586.2008.00289.x
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    References listed on IDEAS

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    1. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    2. Kiminori Matsuyama, 2000. "A Ricardian Model with a Continuum of Goods under Nonhomothetic Preferences: Demand Complementarities, Income Distribution, and North-South Trade," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1093-1120, December.
    3. Beladi, H. & Jones, R.W. & Marjit, S., 1996. "Technology for Sale," RCER Working Papers 425, University of Rochester - Center for Economic Research (RCER).
    4. Jones, Ronald W., 2008. "Key international trade theorems and large shocks," International Review of Economics & Finance, Elsevier, vol. 17(1), pages 103-112.
    5. Kemp, Murray C & Shimomura, Koji, 1988. "The Impossibility of Global Absolute Advantage in the Heckscher-Ohlin Model of Trade," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 575-576, September.
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