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On The Smithian Origins Of "New" Trade And Growth Theories

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  • Aykut Kibritcioglu

    (Economics Dep, Ankara University)

Abstract

Adam Smith is generally ignored as an international trade theorist in textbooks because of the common belief that he only confirmed the rule of absolute advantages, and that, there is nothing "new" in his theoretical explanations about the determination of the structure of and gains from trade. Exceptional views can be found in Myint (1958, 1977), Hollander (1973), Bloomfield (1975) and Hong (1984). His vent-for-surplus approach underlines the importance of the existence of increasing returns to scale and of the technological change resulting from learning by doing for international trade and long-run economic growth. It has a pioneering characteristic from the perspective of the so-called "new" trade and growth theories developed in recent decades. This paper focuses only on this Smithian origins of new theories and demonstrates the main links between the following three aspects: (1) foreign trade, (2) economic growth and (3) Smith's ideas on economies of scale and learning by doing.

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  • Aykut Kibritcioglu, "undated". "On The Smithian Origins Of "New" Trade And Growth Theories," Working Papers _001, Ankara University Faculty of Political Sciences.
    • Handle: RePEc:wop:afpswp:_001
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    File URL: http://economicsbulletin.vanderbilt.edu/2002/volume2/EB-02B00001A.pdf
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    More about this item

    Keywords

    long-run economic growthning by doing; technological externalities; approach;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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