The Role of Technology in the Theory of International Trade

Abstract

ly P. "Technology " refers to the way in which resources are converted into th commodities. This is such a basic feature of an economic model, whether ur of a closed or open economy, that any discussion of the "role " of tech-ng nology in the theory of trade must be arbitrarily incomplete. In what follows I have tried to cast the net widely and deal with several aspects 'ly of technology in the theory of international trade. tal ch sal I. A TWO-COUNTRY, TWO-COMMODiTY, TWO-FACTOR MODEL £U1 Some years ago the literature on trade theory was largely concerned with the analysis of the impact of technological change on the equilibrium position in a two-commodity, two-country model of trade. Although the analysis involved in discussing the role of technical change in influenc-ing trade patterns may be in its infancy, the analysis of the impact of exogenous changes in techniques is basically complete. It is useful to begin by sketching out the standard trade model in a form that permits a general treatment of the exogenous case. In doing so I shall rely heavily on the procedure I developed several years ago [8].

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 31 citations exist upstream.