Factor-supply differences as a source of comparative advantage

摘要: The core of international microeconomics remains the Heckscher-Ohlin factor-proportions model. Although page count in recent academic journals is decidedly against model, this more a reflection how economists spend their research time than what they believe. Time will tell whether flurry formal models with scale economies and strategic interactions be able to squeeze model small part economists' collective consciousness. Frankly I doubt that happen. After all, has competed for decades these other viewpoints done so quite successfully. "new" theories trade are novel linguistic sense, discarding English-only language an earlier generation favor "modern" mathematical modeling. There no innovations important capable driving profession one way or at least on temporary basis. Recall even word "protection" metaphor intended make tariffs seem attractive. wonder commercial-policy debate would go if were labeled "robbery" instead "protection." hope there something about content message, separate from language, determines ultimate course intellectual currents our profession. Insightfulness, validity, usefulness, like ought matter may decisive. Linguistic novelty possible reason interest industrial strategies as explanations trade. Another possibility that, marketplace ideas, demand creates its own supply. new thirst isolationism substantial segment U.S. population, who last several have found earnings under attack foreign competition. It unseemly counterproductive group workers/owners petition government merely increase earnings. They (and been supplied) some foundation justify complaints reduced theory does job nicely, thank you. A not insubstantial why should cling it gives barriers label genuinely deserve: highway robbery. Of course, robbery often style Robin Hood Jesse James, but nonetheless, when metaphors peeled away, every barrier ever seen device transfer income another, perhaps frequently stop otherwise take place. Trade side effects, redistribution primary purpose. find myself roughly 10-percent point paper without mentioning any empirical facts. First was felicitousness novelty, then pandering. What facts? Don't matter? Sorry, do very much. One facts much economics) both factually correct incorrect. We developed culture can deal complexity ambiguity real economic phenomena. teach ourselves naive *Anderson Graduate School Management, University California, Los Angeles, CA 90024.