Version actuelle datée du 5 avril 2020 à 20:38

Ricardo's model: productivity differences as a determinant of trade

Données clés
Professeur(s)	Sbergami, Federica^[1]^[2]^[3] Céline Carrère^[4]^[5]^[6]^[7]^[8]^[9]
Cours	International Economy

Lectures

David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country's workers are more efficient at producing every single good than workers in other countries. He demonstrated that if two countries capable of producing two commodities engage in the free market, then each country will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good, provided that there exist differences in labor productivity between both countries.^[10]^[11] Widely regarded as one of the most powerful^[12] yet counter-intuitive^[13] insights in economics, Ricardo's theory implies that comparative advantage rather than absolute advantage is responsible for much of international trade.^[14]

Countries trade internationally for two reasons:

Exploiting differences between countries:
- Factor endowment (capital, labour, natural resources)
- productivity
In order to exploit economies of scale in production...

Definitions and notations:

Labor productivity = ${\frac {Y}{L}}=A_{YL}$

Number of units produced per unit of work

Unit quantities of work = ${\frac {L}{Y}}=a_{LY}$

Unit coefficient

Number of work units required per product unit

A_{YL}={\frac {1}{a_{YL}}}

Ricardo's production function

Y=A_{YL}L={\frac {1}{a_{LY}}}L

Languages

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The law of comparative advantage[modifier | modifier le wikicode]

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.^[15]

In an economic model, agents have a comparative advantage over others in producing a particular good if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade.^[16] Comparative advantage describes the economic reality of the work gains from trade for individuals, firms, or nations, which arise from differences in their factor endowments or technological progress.^[17] (One should not compare the monetary costs of production or even the resource costs (labor needed per unit of output) of production. Instead, one must compare the opportunity costs of producing goods across countries^[18]).^[19]

An example[modifier | modifier le wikicode]

On Valentine's Day the demand for flowers in the United States is 10 million.

Producing flowers in February in the United States is expensive.

The resources used to produce flowers can be used to produce something else: computers.

Flower production has an opportunity cost in terms of computers (or some other good).

Suppose that in the United States 10 million flowers can be produced with the same resources as 100,000 computers.

Suppose that in South America 10 million flowers can be produced with 30,000 computers.

The 10 million flowers have a lower opportunity cost in South America => specialization in flower production.

Trade gains and comparative advantage: If instead of producing the 10 million flowers they need in the USA, they specialise in computer production and South America specialises in flower production, and they trade, then the "world" will have 70,000 more computers at its disposal.

In Ricardo's model, comparative advantage is determined by relative labour productivity.

Absolute vs. comparative advantage[modifier | modifier le wikicode]

Not all individuals (countries) have an absolute advantage...

The good news is that all countries (individuals) have a comparative advantage: an activity in which one is relatively better than anyone else (as long as there are more activities than countries). Specialization in the activity in which one is relatively better is a source of gain to trade, even when one has no absolute advantage (notion of opportunity cost).

Example: Tony Parker plays basketball better than his gardener. He also cuts the grass faster. Parker therefore has two absolute advantages over his gardener and his gardener has none. However, it is reasonable for Parker to have a gardener. Why does he need a gardener? Because Parker's opportunity cost for the gardening business is much greater than that of his gardener who doesn't play in the NBA.

Ricardo's closed economy[modifier | modifier le wikicode]

Assumptions[modifier | modifier le wikicode]

Labour is the only factor of production

His offer is fixed (perfectly inelastic).

Labour productivity is fixed

Y=A_{YL}={\frac {1}{a_{LY}}}L

Two substitutable goods are produced, namely cheese and wine.

Perfect competition on all markets (goods and labour)

Production possibilities[modifier | modifier le wikicode]

The Production Possibilities Frontier (PPF) gives us the maximum amount of wine that can be produced given the amount of cheese produced.

We start from the condition of equilibrium on the labour market :

L_{v}+L_{F}=L=a_{LV}Y_{V}+a_{LF}Y_{F}

And we solve for $Y_{V}$ (ou $Y_{F}$ ) :

Y_{V}={\frac {1}{a_{LV}}}L-{\frac {a_{LF}}{a_{LV}}}Y_{F}

The frontier of production possibilities: Corresponds to figure 3.1 on page 34 of KOM (2012).

Balance of production in the closed economy[modifier | modifier le wikicode]

$P_{V}$ = price of wine, $P_{F}$ = cheese price.

$w_{V}$ = wine salary, $w_{F}$ = cheese wage

If perfect competition => no profit:

$-P_{V}Y_{V}=w_{V}L_{V}$ => $w_{V}={\frac {P_{V}}{a_{LV}}}$
$-P_{F}Y_{F}=w_{F}L_{F}$ => $w_{F}={\frac {P_{F}}{a_{LF}}}$

Perfect mobility of work between the two sectors therefore:

If $w_{F}>w_{V}$ (that is, if ${\frac {p_{F}}{p_{V}}}>{\frac {a_{LF}}{a_{LV}}}$

then no wine production

If $w_{V}>w_{F}$ (that is, if ${\frac {p_{F}}{p_{V}}}<{\frac {a_{LF}}{a_{LV}}}$

then no cheese production

Production balance.

In a closed economy both goods are produced (because quantities produced = quantities consumed) and as perfect mobility of labour between the two sectors, in balance:

w_{V}=w_{F}

So ${\frac {P_{F}}{P_{V}}}={\frac {a_{LF}}{a_{LV}}}$

Relative price of autarky = opportunity cost</math>

The quantities consumed/produced of each good are determined by the relative demand for the two goods at the relative price set by the unit labour coefficients.

The autarky balance: The autarky quantities consumed are determined by the relative demand conditions.

Trade in the Ricardo model[modifier | modifier le wikicode]

Assumptions[modifier | modifier le wikicode]

Two countries: Home and Foreign*

Two properties: Cheese and Wine

Labour is the only factor of production

His offer is fixed (perfectly inelastic).

Labour productivity is fixed

Perfect competition in all markets: goods and labour

We export the good in which we have a comparative advantage and import the other good.

If

{\frac {a_{LF}}{a_{LV}}}<{\frac {a_{LF}^{*}}{a_{LV}^{*}}}

=> Home has a comparative advantage in cheese production (lower opportunity cost than Foreign)

In free trade balance, we have (complete?) specialization of Home in Cheese and Foreign in Wine.

The equilibrium price is determined by the intersection of relative demand and supply.

Relative global demand and supply[modifier | modifier le wikicode]

Corresponds to figure 3.3 on page 38 of KOM (2012).

Gains from trade[modifier | modifier le wikicode]

Note: in an open economy, the frontier of production possibilities (from slope to slope) is not the same as in an open economy. ${\frac {a_{LF}}{a_{LV}}}$ and the consumer's budget constraint (of slope ${\frac {P_{F}}{P_{V}}}$ are no longer necessarily confused!

Let's remember that ${\frac {a_{LF}}{a_{LV}}}<{\frac {a_{LF}^{*}}{a_{LV}^{*}}}$

Corresponds to figure 3.4 on page 39 of KOM (2012).

Salaries[modifier | modifier le wikicode]

In the presence of trade, the prices of goods are identical in both countries (otherwise arbitration).

Thus, absolute productivity differences between countries mean that wages are not necessarily equal.

But as long as the relative price of free trade is between the two prices of autarky, (real) wages rise in both countries when trade is opened up.

Empirical evidence on Ricardo's model[modifier | modifier le wikicode]

Despite higher absolute productivity in the United States than in England at the end of World War II, exports from both countries were in line with the prediction of Ricardo's model (McDougall, EJ 1951).

Three misconceptions about comparative advantage[modifier | modifier le wikicode]

« Openness to free trade can only benefit an economy if it is sufficiently efficient or competitive. »

Wrong: What determines gains in trade is not the absolute advantage, but the relative advantage.

a_{LF}=10\times a_{LF}^{*}

et

a_{LV}^{=}30\times a_{LV}^{*}

, Mais donc

{\frac {a_{LF}}{a_{LV}}}={\frac {1}{\frac {3\times a_{LF}^{*}}{a_{LV}^{*}}}}

and so Home wins by specializing in cheese production, even though it is 10 times less productive than Foreign.

« Competition from low-wage countries is unfair and penalizes developed countries ("social dumping"). »

Wages reflect differences in absolute productivity between countries. And gains from trade are independent of absolute benefits.

Hourly labour costs in Europe.

« International trade allows companies and consumers in developed countries to exploit workers in the Third World by keeping wages low. »

Wrong: Trade increases workers' wages by allowing them to specialize where they are relatively more productive. When the price of the exportable good increases (Cheese), this leads to an increase in real wages.

The solution is not to stop trade, but to allow them to increase their productivity (education, institutions, respect for the law, etc.).

Summary[modifier | modifier le wikicode]

The Ricardian model is the simplest model to explain how differences between countries can lead to trade gains.

Labour is the only factor of production and gains from trade are explained by differences in relative productivity between countries.

In the Ricardian model, a country will export the good in which it has a comparative advantage, and import the good in which it has a comparative disadvantage, even when it has an absolute advantage in the production of that imported good.

Gains to trade can be seen as :

Trade being a more productive indirect method of production...
An expansion of the countries' consumption possibilities

The distribution of gains to trade will depend on the difference between relative prices of autarky and relative prices of free trade.

The basic prediction of the Ricardian model that a country exports more of the good in which it has higher relative productivity (regardless of its absolute productivity) has been confirmed by a large number of studies.

Annexes[modifier | modifier le wikicode]

References[modifier | modifier le wikicode]

↑ Page personnelle de Federica Sbergami sur le site de l'Université de Genève
↑ Page personnelle de Federica Sbergami sur le site de l'Université de Neuchâtel
↑ Page personnelle de Federica Sbergami sur Research Gate
↑ Céline Carrère - Faculté d'économie et de management - UNIGE
↑ Céline Carrère - Google Scholar Citations
↑ Director Céline Carrère - Rectorat - UNIGE
↑ Céline Carrère | Sciences Po - Le Laboratoire Interdisciplinaire d'Evaluation des Politiques Publiques (LIEPP)
↑ Céline Carrere - EconPapers
↑ Céline Carrère's research works - ResearchGate
↑ Baumol, William J. and Alan S. Binder, 'Economics: Principles and Policy', p. 50
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Wikipedia contributors. (2020, February 11). Comparative advantage. In Wikipedia, The Free Encyclopedia. Retrieved 08:40, March 9, 2020, from https://en.wikipedia.org/w/index.php?title=Comparative_advantage
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».
↑ Wikipedia contributors. (2020, February 11). Comparative advantage. In Wikipedia, The Free Encyclopedia. Retrieved 08:40, March 9, 2020, from https://en.wikipedia.org/w/index.php?title=Comparative_advantage

[1] Page personnelle de Federica Sbergami sur le site de l'Université de Genève

[2] Page personnelle de Federica Sbergami sur le site de l'Université de Neuchâtel

[3] Page personnelle de Federica Sbergami sur Research Gate

[4] Céline Carrère - Faculté d'économie et de management - UNIGE

[5] Céline Carrère - Google Scholar Citations

[6] Director Céline Carrère - Rectorat - UNIGE

[7] Céline Carrère | Sciences Po - Le Laboratoire Interdisciplinaire d'Evaluation des Politiques Publiques (LIEPP)

[8] Céline Carrere - EconPapers

[9] Céline Carrère's research works - ResearchGate

[10] Baumol, William J. and Alan S. Binder, 'Economics: Principles and Policy', p. 50

[econbook-11] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[12] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[13] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[14] Wikipedia contributors. (2020, February 11). Comparative advantage. In Wikipedia, The Free Encyclopedia. Retrieved 08:40, March 9, 2020, from https://en.wikipedia.org/w/index.php?title=Comparative_advantage

[15] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[uslabor-16] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[17] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[18] Erreur Lua : impossible de créer le processus : proc_open n’est pas disponible. Vérifiez la directive de configuration PHP « disable_functions ».

[19] Wikipedia contributors. (2020, February 11). Comparative advantage. In Wikipedia, The Free Encyclopedia. Retrieved 08:40, March 9, 2020, from https://en.wikipedia.org/w/index.php?title=Comparative_advantage

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@@ Ligne 10 : / Ligne 10 : @@
   | enregistrement =
   | lectures =
-* [[Le modèle de Ricardo : différences de productivité comme déterminant du commerce]]
+* [[Ricardo's model: productivity differences as a determinant of trade]]
-* [[Le modèle Heckscher-Ohlin : différences de dotations en facteurs de production comme déterminant du commerce]]
+* [[The Heckscher-Ohlin model: differences in factor endowments as a determinant of trade]]
-* [[Les économies d’échelle comme déterminant du commerce : au-delà de l’avantage comparatif]]
+* [[Economies of scale as a determinant of trade: beyond comparative advantage]]
-* [[Instruments de politique commerciale]]
+* [[Trade policy instruments]]
-* [[Les accords multilatéraux]]
+* [[Multilateral trade agreements]]
-* [[Les Accords de commerce préférentiel]]
+* [[Preferential Trade Agreements]]
-* [[La Contestation du libre-échange]]
+* [[The Free Trade Challenge]]
-* [[Macroéconomie Internationale : enjeux et tour d'horizon]]
+* [[International Macroeconomics: Issues and Overview]]
-* [[Comptes nationaux et balance des paiements]]
+* [[National Accounts and Balance of Payments]]
-* [[Les taux de change et le marché des changes]]
+* [[Exchange rates and the foreign exchange market]]
-* [[Taux de change à court terme : l’approche par les actifs]]
+* [[Short-term exchange rates: the asset-based approach]]
-* [[Taux de change à long-terme : l’approche monétaire]]
+* [[Long-term exchange rates: the monetary approach]]
-* [[Produit intérieur et taux de change à court terme]]
+* [[Domestic product and short-term exchange rates]]
-* [[Taux de change flottants]]
+* [[Floating exchange rates]]
-* [[Taux de change fixes et interventions sur le marché des changes]]
+* [[Fixed exchange rates and intervention on the foreign exchange market]]
 }}
+[https://en.wikipedia.org/wiki/David_Ricardo David Ricardo] developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country's workers are more efficient at producing ''every'' single good than workers in other countries. He demonstrated that if two countries capable of producing two commodities engage in the free market, then each country will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good, provided that there exist differences in labor productivity between both countries.<ref>Baumol, William J. and Alan S. Binder, 'Economics: Principles and Policy', [https://books.google.com/books?id=6Kedl8ZTTe0C&lpg=PA49&dq=%22law%20of%20comparative%20advantage%22&pg=PA50#v=onepage&q=%22law%20of%20comparative%20advantage%22&f p. 50]</ref><ref name="econbook">{{cite book |last1=O'Sullivan |first1=Arthur |authorlink1=Arthur O'Sullivan (economist) |last2=Sheffrin |first2=Steven M. |title=Economics: Principles in Action |edition=2nd |series=The Wall Street Journal: Classroom Edition |year=2003 |origyear= January 2002|publisher= Pearson Prentice Hall: Addison Wesley Longman|location=Upper Saddle River, New Jersey |isbn=978-0-13-063085-8 |page= 444 }}</ref> Widely regarded as one of the most powerful<ref>{{cite web|url=http://internationalecon.com/Trade/Tch40/T40-0.php |title=International Trade Theory and Policy|author=Steven M Suranovic|year=2010}}</ref> yet counter-intuitive<ref>{{cite web|url=http://web.mit.edu/krugman/www/ricardo.htm | author=Krugman, Paul|title=Ricardo's Difficult Idea |year=1996 |accessdate=2014-08-09}}</ref> insights in economics, Ricardo's theory implies that comparative advantage rather than absolute advantage is responsible for much of international trade.<ref>Wikipedia contributors. (2020, February 11). Comparative advantage. In Wikipedia, The Free Encyclopedia. Retrieved 08:40, March 9, 2020, from https://en.wikipedia.org/w/index.php?title=Comparative_advantage</ref>
 Countries trade internationally for two reasons:
@@ Ligne 45 : / Ligne 47 : @@
 {{Translations
 | fr = Le modèle de Ricardo : différences de productivité comme déterminant du commerce
-| es =
+| es = El modelo de Ricardo: las diferencias de productividad como determinante del comercio
 }}
-= Comparative advantage =
+= The law of comparative advantage =
+The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.<ref>{{cite book|last1=Dixit|first1=Avinash|last2=Norman|first2=Victor|title=Theory of International Trade: A Dual, General Equilibrium Approach|year=1980|publisher=Cambridge University Press|location=Cambridge|page=2}}</ref>
+In an economic model, agents have a comparative advantage over others in producing a particular good if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade.<ref name="uslabor">{{cite web|url=http://www.bls.gov/bls/glossary.htm|title=BLS Information |date=February 28, 2008|work=Glossary|publisher=U.S. Bureau of Labor Statistics Division of Information Services |accessdate=2009-05-05}}</ref> Comparative advantage describes the economic reality of the work gains from trade for individuals, firms, or nations, which arise from differences in their factor endowments or technological progress.<ref>{{cite book|last1=Maneschi|first1=Andrea|title=Comparative Advantage in International Trade: A Historical Perspective|year=1998|publisher=Elgar|location=Cheltenham|page=1}}</ref> (One should not compare the monetary costs of production or even the resource costs (labor needed per unit of output) of production. Instead, one must compare the opportunity costs of producing goods across countries<ref>{{cite web|title=The Theory of Comparative Advantage: Overview|url=http://catalog.flatworldknowledge.com/bookhub/reader/28?e=fwk-61960-chab#fwk-61960-ch02_s02|website=Flat World Knowledge|accessdate=23 February 2015}}</ref>).<ref>Wikipedia contributors. (2020, February 11). Comparative advantage. In Wikipedia, The Free Encyclopedia. Retrieved 08:40, March 9, 2020, from https://en.wikipedia.org/w/index.php?title=Comparative_advantage</ref>
 == An example ==
@@ Ligne 155 : / Ligne 161 : @@
 == Relative global demand and supply ==
-[[File:économie internationale ricardo demande et offre mondiales relatives schéma 1.png|thumb|center|Correspond à la figure 3.3 page 38 de KOM (2012)]]
+[[File:économie internationale ricardo demande et offre mondiales relatives schéma 1.png|thumb|center|Corresponds to figure 3.3 on page 38 of KOM (2012).]]
-[[File:économie internationale ricardo demande et offre mondiales relatives schéma 2.png|thumb|center|Correspond à la figure 3.3 page 38 de KOM (2012)]]
+[[File:économie internationale ricardo demande et offre mondiales relatives schéma 2.png|thumb|center|Corresponds to figure 3.3 on page 38 of KOM (2012).]]
-[[File:économie internationale ricardo demande et offre mondiales relatives schéma 3.png|thumb|center|Correspond à la figure 3.3 page 38 de KOM (2012)]]
+[[File:économie internationale ricardo demande et offre mondiales relatives schéma 3.png|thumb|center|Corresponds to figure 3.3 on page 38 of KOM (2012).]]
-== Les gains du commerce ==
+== Gains from trade ==
-Remarque : en économie ouverte la FPP (de pente <math>\frac {a_{LF}}{a_{LV}}</math> et la contrainte budgétaire du consommateur (de pente <math>\frac {P_F}{P_V}</math> ne sont plus forcement confondues!
+Note: in an open economy, the frontier of production possibilities (from slope to slope) is not the same as in an open economy. <math>\frac {a_{LF}}{a_{LV}}</math> and the consumer's budget constraint (of slope <math>\frac {P_F}{P_V}</math> are no longer necessarily confused!
-Rappelons que <math>\frac {a_{LF}}{a_{LV}} < \frac {a_{LF}^*}{a_{LV}^*}</math>
+Let's remember that <math>\frac {a_{LF}}{a_{LV}} < \frac {a_{LF}^*}{a_{LV}^*}</math>
-[[File:économie internationale ricardo gains du commerce schéma 1.png|thumb|center|Correspond à la figure 3.4 page 39 de KOM (2012)]]
+[[File:économie internationale ricardo gains du commerce schéma 1.png|thumb|center|Corresponds to figure 3.4 on page 39 of KOM (2012).]]
-== Les salaires ==
+== Salaries ==
-En présence de commerce les prix des biens sont identiques dans les 2 pays (sinon arbitrage)
+In the presence of trade, the prices of goods are identical in both countries (otherwise arbitration).
-Donc, les différences de productivités absolues entre les pays font que les salaires ne sont pas nécessairement égaux
+Thus, absolute productivity differences between countries mean that wages are not necessarily equal.
-Mais tant que le prix relatif de libre-échange est entre les deux prix d’autarcie, les salaires (réels) augmentent dans les deux pays lorsqu’on s’ouvre au commerce.
+But as long as the relative price of free trade is between the two prices of autarky, (real) wages rise in both countries when trade is opened up.
-= Évidence empirique sur le modèle de Ricardo =
+= Empirical evidence on Ricardo's model =
-Malgré une productivité absolue plus élevée aux États-Unis qu’en Angleterre a la fin de la 2ème guerre mondiale, les exportations des 2 pays correspondaient à la prédiction du modèle de Ricardo (McDougall, EJ 1951).
+Despite higher absolute productivity in the United States than in England at the end of World War II, exports from both countries were in line with the prediction of Ricardo's model (McDougall, EJ 1951).
 [[File:économie internationale évidence empirique sur le modèle de Ricardo 1.png|thumb|center]]
-= Trois idées reçues sur l’avantage comparatif =
+= Three misconceptions about comparative advantage =
-{{citation bloc|L’ouverture au libre-échange ne peut profiter à une économie qu’à condition qu’elle soit suffisamment efficace ou compétitive.}}
+{{citation bloc|Openness to free trade can only benefit an economy if it is sufficiently efficient or competitive.}}
-:Faux : ce qui détermine les gains au commerce n’est pas l’avantage absolu, mais l’ avantage relatif.
+:Wrong: What determines gains in trade is not the absolute advantage, but the relative advantage.
-:<math>a_{LF} = 10 \times a_{LF}^*</math> et <math>a_{LV}^ = 30 \times a_{LV}^*</math>, Mais donc <math>\frac {a_{LF}}{a_{LV}} = \frac {1}{\frac {3 \times a_{LF}^*}{a_{LV}^*}}</math> et donc Home gagne en se spécialisant dans la production de fromage, même s’il est 10 fois moins productif que Foreign.
+:<math>a_{LF} = 10 \times a_{LF}^*</math> et <math>a_{LV}^ = 30 \times a_{LV}^*</math>, Mais donc <math>\frac {a_{LF}}{a_{LV}} = \frac {1}{\frac {3 \times a_{LF}^*}{a_{LV}^*}}</math> and so Home wins by specializing in cheese production, even though it is 10 times less productive than Foreign.
-{{citation bloc|La concurrence de pays à bas salaires est injuste et pénalise les pays développés (« dumping social »).}}
+{{citation bloc|Competition from low-wage countries is unfair and penalizes developed countries ("social dumping").}}
-:Faux. Le salaire reflète les différences de productivité absolue entre les pays. Et les gains du commerce sont indépendants des avantages absolus.
+:Wages reflect differences in absolute productivity between countries. And gains from trade are independent of absolute benefits.
-[[File:économie internationale coûts horaires du travail en Europe 1.png|thumb|center|Coûts horaires du travail en Europe.]]
+[[File:économie internationale coûts horaires du travail en Europe 1.png|thumb|center|Hourly labour costs in Europe.]]
-{{citation bloc|Le commerce international permet aux entreprises et consommateurs des pays développés d’exploiter les travailleurs du Tiers- Monde en y maintenant de faibles salaires.}}
+{{citation bloc|International trade allows companies and consumers in developed countries to exploit workers in the Third World by keeping wages low.}}
-:Faux. Le commerce augmente le salaire des travailleurs en leur permettant de se spécialiser là où ils sont relativement plus productifs. Lorsque le prix du bien exportable augmente (Fromage), ceci engendre une augmentation des salaires réels.
+:Wrong: Trade increases workers' wages by allowing them to specialize where they are relatively more productive. When the price of the exportable good increases (Cheese), this leads to an increase in real wages.
-:La solution n’est pas d’arrêter le commerce, mais de leur permettre d’augmenter leur productivité (éducation, institutions, respect de la loi, etc.)
+:The solution is not to stop trade, but to allow them to increase their productivity (education, institutions, respect for the law, etc.).
-= Résumé =
+= Summary =
-Le modèle Ricardien est le modèle le plus simple pour expliquer comment des différences entre pays peuvent nous amener des gains aux échanges
+The Ricardian model is the simplest model to explain how differences between countries can lead to trade gains.
-Le travail est le seul facteur de production et les gains du commerce sont expliqués par les différences de productivité relative entre les pays
+Labour is the only factor of production and gains from trade are explained by differences in relative productivity between countries.
-Dans le modèle Ricardien, un pays va exporter le bien dans lequel il a un avantage comparatif, et importer le bien dans lequel il a un désavantage comparatif, même lorsqu’ il a un avantage absolu dans la production de ce bien importé.
+In the Ricardian model, a country will export the good in which it has a comparative advantage, and import the good in which it has a comparative disadvantage, even when it has an absolute advantage in the production of that imported good.
-Les gains au commerce peuvent être vus comme :
+Gains to trade can be seen as :
-*Le commerce étant une méthode indirecte de production plus productive
+*Trade being a more productive indirect method of production...
-*Une expansion de la possibilité de consommations des pays
+*An expansion of the countries' consumption possibilities
-La distribution des gains au commerce va dépendre de la différence entre les prix relatifs d’autarcie et les prix relatifs de libre-échange.
+The distribution of gains to trade will depend on the difference between relative prices of autarky and relative prices of free trade.
-La prédiction de base du modèle Ricardien selon laquelle un pays exporte plus du bien dans lequel il a une productivité relative plus importante (indépendamment de sa productivité absolue) a été confirmée par un grand nombre d’études.
+The basic prediction of the Ricardian model that a country exports more of the good in which it has higher relative productivity (regardless of its absolute productivity) has been confirmed by a large number of studies.
 = Annexes =

« Ricardo's model: productivity differences as a determinant of trade » : différence entre les versions

Version actuelle datée du 5 avril 2020 à 20:38

Sommaire

The law of comparative advantage[modifier | modifier le wikicode]

An example[modifier | modifier le wikicode]

Absolute vs. comparative advantage[modifier | modifier le wikicode]

Ricardo's closed economy[modifier | modifier le wikicode]

Assumptions[modifier | modifier le wikicode]

Production possibilities[modifier | modifier le wikicode]

Balance of production in the closed economy[modifier | modifier le wikicode]

Trade in the Ricardo model[modifier | modifier le wikicode]

Assumptions[modifier | modifier le wikicode]

Relative global demand and supply[modifier | modifier le wikicode]

Gains from trade[modifier | modifier le wikicode]

Salaries[modifier | modifier le wikicode]

Empirical evidence on Ricardo's model[modifier | modifier le wikicode]

Three misconceptions about comparative advantage[modifier | modifier le wikicode]

Summary[modifier | modifier le wikicode]

Annexes[modifier | modifier le wikicode]

References[modifier | modifier le wikicode]