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Survey of Circumstances affecting the Location of Production and International Trade as Analysed in the Theoretical Literature

In: The International Allocation of Economic Activity

Author

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  • Gottfried Haberler

Abstract

Suppose Ricardo had been asked why Portugal had a comparative advantage in wine; he surely would have answered, in effect though not in these words, because Portugal was well supplied with factors of production needed for wine growing, that is to say suitable land and plenty of sunshine. If the questioner had continued and asked whether there were not still other factors to be considered such as capital, Ricardo would have answered: Yes, certainly; in poor countries where labour is cheap capital will be invested in labour-intensive industries and in rich countries capital will be invested in industries that use comparatively little labour.

Suggested Citation

  • Gottfried Haberler, 1977. "Survey of Circumstances affecting the Location of Production and International Trade as Analysed in the Theoretical Literature," Palgrave Macmillan Books, in: Bertil Ohlin & Per-Ove Hesselborn & Per Magnus Wijkman (ed.), The International Allocation of Economic Activity, chapter 1, pages 1-24, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-03196-2_1
    DOI: 10.1007/978-1-349-03196-2_1
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    Cited by:

    1. Tilton, John E. & Landsberg, Hans H., 1997. "Innovation, Productivity Growth, and the Survival of the U.S. Copper Industry," Discussion Papers 10534, Resources for the Future.
    2. Davis, Graham A., 2010. "Trade in mineral resources," WTO Staff Working Papers ERSD-2010-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Jean-Luc Gaffard, 1980. "Monnaie, structure et emploi dans une économie en récession," Revue Économique, Programme National Persée, vol. 31(2), pages 234-257.
    4. Vásquez Cordano, Arturo L. & Prialé Zevallos, Rodrigo, 2021. "Country competitiveness and investment allocation in the mining industry: A survey of the literature and new empirical evidence," Resources Policy, Elsevier, vol. 73(C).

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