#3400. Absolute advantages and capital mobility in international trade theory

October 2026publication date
Proposal available till 23-05-2025
4 total number of authors per manuscript0 $

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Journal’s subject area:
Arts and Humanities (all);
History and Philosophy of Science;
Economics, Econometrics and Finance (miscellaneous);
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Abstract:
Capital mobility has the potential of undermining the validity of Ricardo’s theory of comparative advantage. Within this context, the tendency towards a uniform rate of profit makes absolute costs relevant for the analysis of specialisation patterns. A historical and analytical reconstruction is presented of a few significant contributions addressing this point, with a particular focus on the possibility of exclusion from trade and production “desertification” caused by a country’s low profitability of capital. A generalisation of a result obtained by Parrinello is provided.
Keywords:
absolute advantage; B51; Capital mobility; D24; F21; specialisation

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