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Disadvantaging Comparative Advantages: The Problem of Decreasing Returns

In: Market Forces and World Development

Author

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  • Kunibert Raffer

Abstract

The effects of increasing returns to scale have been discussed for quite some time by economists focusing on trade theory. By contrast, the case of decreasing returns has not received much attention so far. Even though this latter case was classified as posing little analytical difficulty by Jones and Neary (1984, p. 48), it is of particular interest because absolutely rational specialisation according to (static) comparative costs may finally result in immiserisation and decreased (global) output.

Suggested Citation

  • Kunibert Raffer, 1994. "Disadvantaging Comparative Advantages: The Problem of Decreasing Returns," Palgrave Macmillan Books, in: Renee Prendergast & Frances Stewart (ed.), Market Forces and World Development, chapter 5, pages 75-89, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-23138-6_5
    DOI: 10.1007/978-1-349-23138-6_5
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    Cited by:

    1. Kunibert Raffer, 2011. "Neoliberal Capitalism: A Time Warp Backwards to Capitalism’s Origins?," Forum for Social Economics, Springer;The Association for Social Economics, vol. 40(1), pages 41-62, April.
    2. repec:wsr:wpaper:y:2010:i:047 is not listed on IDEAS

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