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An empirical demonstration of classical comparative cost theory: a correction to Balassa (1963)

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  • Gawon Yoon

Abstract

In this study, I provide corrections to the estimation results reported by Balassa (1963) on testing the implications of the Ricardian model of international trade. While all of his estimation results have changed, his main conclusions still pertain. I conjecture that the errors are most likely due to computing errors.

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  • Gawon Yoon, 2011. "An empirical demonstration of classical comparative cost theory: a correction to Balassa (1963)," Applied Financial Economics, Taylor & Francis Journals, vol. 21(23), pages 1765-1767.
    • Handle: RePEc:taf:apfiec:v:21:y:2011:i:23:p:1765-1767
    DOI: 10.1080/09603107.2011.564130
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    References listed on IDEAS

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    1. James R. Lothian & Mark P. Taylor, 2008. "Real Exchange Rates Over the Past Two Centuries: How Important is the Harrod‐Balassa‐Samuelson Effect?," Economic Journal, Royal Economic Society, vol. 118(532), pages 1742-1763, October.
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    3. Alan M. Taylor & Mark P. Taylor, 2004. "The Purchasing Power Parity Debate," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 135-158, Fall.
    4. Stephen S. Golub & Chang‐Tai Hsieh, 2000. "Classical Ricardian Theory of Comparative Advantage Revisited," Review of International Economics, Wiley Blackwell, vol. 8(2), pages 221-234, May.
    5. Alan M. Taylor & Mark P. Taylor, 2004. "The Purchasing Power Parity Debate," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 135-158, Fall.
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