This is a preview. Log in through your library . Abstract This paper develops a dynamic model of innovation and international trade in which agents can direct their research efforts to specific goods ...

David Ricardo, a Scottish economist, made a perceptive observation that a few individuals, firms, or countries can gain from trading, even if one of them is objectively the best in all activities.

Economists love to talk about the theory of comparative advantage, which holds (somewhat counterintuitively) that two countries trading with each other will be better off if each specializes in what ...

In the early 19th century David Ricardo formulated the principle of comparative advantage to explain mutual gains from trade among countries. He based it on a critical assumption: that capital did not ...

Let’s say for now that the day comes when robots and artificial intelligence can outperform human beings at every conceivable job, from waxing floors to waxing eyebrows to waxing philosophical at a ...

Abstract: At present, the labor cost of China’s manufacturing industry is continuously rising, the labor cost gap between regions keeps widening, and the comparative advantage of low labor cost for ...