Knowledge, Truth and the History of Economic Thought
Edited by Stephan Boehm, Christian Gehrke, Heinz D. Kurz and Richard Sturn
Chapter 15: The 'institutional factor' in the theory of international trade: new vs. old trade theories*
15. The Ôinstitutional factorÕ in the theory of international trade: new vs. old trade theories* Sergio Parrinello INTRODUCTION In the development of the pure theory of international trade, from the late 1960s up to the present day, the following directions of theoretical work appear prominent. Until the late 1970s we find: 1. The dimensional issue: a. beyond the dimensions of the 2 ´ 2 ´ 2 model.1 b. reappraisal and criticism of the HeckscherÐOhlin, Samuelson, Rybcyznsky theorems from the point of view of capital theory.2 Theories with exogenous limits imposed on distributive variables and equilibrium unemployment: a. neo-Marxian and neo-Ricardian models.3 b. neoclassical models in which rigidities in distributive variables are subsumed under the theory of Ômarket distortionsÕ.4 2. After the 1970s other main directions emerged and can be grouped under the following headings: 3. 4. Trade theory with external economies, increasing returns, imperfect competition, location-agglomeration theory.5 Trade theory in which the Ôinstitutional factorÕ is assumed to be endogenous.6 A terminological clarification is necessary. In this chapter (3) and (4) are called the Ônew trade theoryÕ, although in the current literature this expression is used to denote mainly (3). ÔOld trade theoriesÕ include both RicardoÕs classical approach and HeckscherÐOhlinÕs neoclassical trade theory. Furthermore the term Ôinstitutional factorÕ will be used as a catch-all term to encompass concepts such as institutions, social norms, laws, rules, standards, conventions, customs and political agencies. 256 The Ôinstitutional factorÕ in international trade 257 The new trade theory represents novel perspectives compared with...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.