Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam

This paper aims to analyse the international trade in the real world by applying the Ricardian trade theory. In doing this, simple comparative advantage assumptions are used to examine trading of palm oil and rice between Malaysia and Vietnam. By using this theory, it is proven that international tr...

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Main Authors: Kok, Wooi Yap, Selvaratnam, Doris Padmini
Format: Article
Language:English
Published: Universiti Teknologi MARA Selangor 2018
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/28930/
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author Kok, Wooi Yap
Selvaratnam, Doris Padmini
author_facet Kok, Wooi Yap
Selvaratnam, Doris Padmini
author_sort Kok, Wooi Yap
building UiTM Institutional Repository
collection Online Access
description This paper aims to analyse the international trade in the real world by applying the Ricardian trade theory. In doing this, simple comparative advantage assumptions are used to examine trading of palm oil and rice between Malaysia and Vietnam. By using this theory, it is proven that international trade takes place because of efficiency to produce exported product. A country will export products that use its abundant and cheap factors of production and import products that use its scarce factors. Various empirical evidences of previous studies are also used to discuss the importance of the Ricardian model. However, it is also highlighted in the paper that the Ricardian model could be misleading as it has several limitations that restrict its usefulness.
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spelling uitm-289302020-03-30T08:46:41Z https://ir.uitm.edu.my/id/eprint/28930/ Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam jibe Kok, Wooi Yap Selvaratnam, Doris Padmini Data envelopment analysis Consumption. Demand (Economic theory) This paper aims to analyse the international trade in the real world by applying the Ricardian trade theory. In doing this, simple comparative advantage assumptions are used to examine trading of palm oil and rice between Malaysia and Vietnam. By using this theory, it is proven that international trade takes place because of efficiency to produce exported product. A country will export products that use its abundant and cheap factors of production and import products that use its scarce factors. Various empirical evidences of previous studies are also used to discuss the importance of the Ricardian model. However, it is also highlighted in the paper that the Ricardian model could be misleading as it has several limitations that restrict its usefulness. Universiti Teknologi MARA Selangor 2018 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/28930/1/28930.pdf Kok, Wooi Yap and Selvaratnam, Doris Padmini (2018) Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam. (2018) Journal of International Business, Economics and Entrepreneurship (JIBE) <https://ir.uitm.edu.my/view/publication/Journal_of=A0International=A0Business,=A0Economics_and=A0Entrepreneurship_=28JIBE=29.html>, 3 (1). pp. 21-29. ISSN 2550-1429 https://jibe.uitm.edu.my/
spellingShingle Data envelopment analysis
Consumption. Demand (Economic theory)
Kok, Wooi Yap
Selvaratnam, Doris Padmini
Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam
title Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam
title_full Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam
title_fullStr Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam
title_full_unstemmed Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam
title_short Can Ricardian model really explain trade? / Kok Wooi Yap and Doris Padmini Selvaratnam
title_sort can ricardian model really explain trade? / kok wooi yap and doris padmini selvaratnam
topic Data envelopment analysis
Consumption. Demand (Economic theory)
url https://ir.uitm.edu.my/id/eprint/28930/
https://ir.uitm.edu.my/id/eprint/28930/