Thursday, July 26, 2007

Draxler on globalization in FT
Would the author be able to convincingly show how comparative advantages can be 'created'?


Anonymous said...

If comparative advantage was wrong policy concept, then, we would probably live in autarkies with undeveloped monolitical economies, without progress.

It is not ideology, if you make 3 times more cars than I do, and you are 7 times better in producing computers, it is still better for you, to buy cars from me.

Michal Lehuta said...

sorry but your comment misses my criticism of 'creating' comparative advantages.. what Juraj had in mind in my opinion was investments in industries with a lot of spillover or network effects that, compared to an industry with a market failure, can (at least in theory) develop a comparative advantage over time..