Open AccessThe Theory of Comparative Advantage in the Context of Underdevelopment and Growth
Author(s) -
Jagdish N. Bhagwati
Publication year - 1962
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v2i3pp.339-353
Subject(s) - underdevelopment , economics , context (archaeology) , comparative advantage , phenomenon , growth theory , welfare , relation (database) , neoclassical economics , positive economics , economic growth , epistemology , computer science , market economy , paleontology , biology , philosophy , database
The theory of comparative advantage has two facets whichshould be clearly distinguished: 1) positive; and, 2) welfare. Theformer relates to the formulation of hypotheses to explain the patternof trade; the latter concerns the advantages to be derived from thepossibility of various forms of trade1. This paper examines the statusof the welfare propositions of trade theory in relation to 1) somefeatures of underdeveloped countries; and, 2) the phenomenon ofgrowth.