TY - JOUR
T1 - A test of the law of comparative advantage, revisited
AU - Kiyota, Kozo
N1 - Funding Information:
Acknowledgments I am grateful to Alan Deardorff, Wilfred Ethier, Fukunari Kimura, Sylvia Kuenne, Tetsuji Okazaki, Robert Stern, Marinos Tsigas, and an anonymous referee for their helpful comments on earlier versions of this paper. Kazunobu Hayakawa provided excellent research assistance. This paper also benefited from comments from seminar participants at the University of Michigan, and participants of the Japan Economic Seminar at George Washington University and the annual meeting of the Japanese Economic Association at Kwansei Gakuin University. Financial support received from the Japan Society for the Promotion of Science (JSPS) 2006 Postdoctoral Fellowships for Research Abroad and from the Grant-in-Aid for Young Scientists (B) is gratefully acknowledged. The usual disclaimers apply.
PY - 2011/11
Y1 - 2011/11
N2 - This paper reconsiders one of the fundamental results in trade theory: the law of comparative advantage from an empirical point of view. The contribution of this paper is to conduct a test of the law of comparative advantage that is consistent with both balanced and unbalanced trade. To do so, this paper utilizes not only net exports valued at autarky prices but also those valued at free trade prices. The results support the empirical validity of the law of comparative advantage even after trade imbalances are taken into account.
AB - This paper reconsiders one of the fundamental results in trade theory: the law of comparative advantage from an empirical point of view. The contribution of this paper is to conduct a test of the law of comparative advantage that is consistent with both balanced and unbalanced trade. To do so, this paper utilizes not only net exports valued at autarky prices but also those valued at free trade prices. The results support the empirical validity of the law of comparative advantage even after trade imbalances are taken into account.
KW - Law of comparative advantage
KW - Trade imbalances
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U2 - 10.1007/s10290-011-0105-y
DO - 10.1007/s10290-011-0105-y
M3 - Article
AN - SCOPUS:80053574417
SN - 1610-2878
VL - 147
SP - 771
EP - 778
JO - Review of World Economics
JF - Review of World Economics
IS - 4
ER -