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Ricardo Meets China, India and U.S. Three Hundred Years Later

Author

Listed:
  • Yochanan Shachmurove

    (Department of Economics, City College of The City University of New York and The Department of Economics, University of Pennsylvania)

  • Uriel Spiegel

    (Department of Interdisciplinary Social Studies Bar Ilan University, and Department of Economics, University of Pennsylvania)

Abstract

As our trading world becomes more globalized, who benefits and who gets hurt? This paper relies on the Ricardian model to explore the effects of technological improvements in underdeveloped countries on the welfare of developed countries. For example, trading between the United States and China, which has undergone a technological improvement in commodities which China imports and exports, may lead to different welfare implications for both countries. The paper models several scenarios to indicate and demonstrate the arguments for and against globalization. The findings suggest that certain policies should be implemented to maintain and enhance the competitiveness of developed countries.

Suggested Citation

  • Yochanan Shachmurove & Uriel Spiegel, 2009. "Ricardo Meets China, India and U.S. Three Hundred Years Later," PIER Working Paper Archive 09-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    • Handle: RePEc:pen:papers:09-015
    as

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    References listed on IDEAS

    as
    1. Rudiger Dornbusch & Stanley Fischer & Paul A. Samuelson, 1980. "Heckscher-Ohlin Trade Theory with a Continuum of Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(2), pages 203-224.
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    More about this item

    Keywords

    International trade; Ricardian Model; Samuelson; Gainers and losers from trade; East-West trade; North-South Trade; China; India; United States; Outsourcing;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade
    • O - Economic Development, Innovation, Technological Change, and Growth
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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