4. International Trade
Theory
Source: OECD Note:Trade is the sum of exports and imports of goods and services measured as a share of GDP.
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Motivation
Trade explained by different valuation of G&S derived of: taste, technology or production factors, firm characteristics...
Static benefits of trade
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Specialization (different relative prices)
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Change in production and consumption structure
Dynamic benefits of trade– Higher growth rate and welfare
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Scale economies
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Increase in competition -> efficiency, lower prices, variety, quality
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Access to new technology
Consequences of trade
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Increase in the production of G&S with greater comparative advantage and in the use of the productions factors in which the country is more intensive.
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Change in consumption / increase in welfare.
Exporter prize (% increase over the non exporting firms)
Source: La empresa exportadora española: características, dinámica y estrategia competitiva
Data
Glossary
Exercise
References
Globalisation and Economic Growth: A Historical Perspective. Nicholas Crafts