Revision of Some Trade Theory Laws of Economics

Subtitle: Part 1. A Ricardian International Trade Model Without the Labor Theory of Value; Part 2. Say's Law, Walras' Law and the Theory of Tariff in Leontief's Trade Model

Article type: Research Article

Authors: Minabe, Shigeo

Affiliations: Austin College and Hiroshima University, Dept. of Economics, Naka-ku, Hiroshima 730, Japan

Abstract: Since the end of the 1960s, the pattern of international trade has exhibited a great change world over. This fact has arised from the increasing importance of the Japanese economy, especially during the 1970s and from that of NIES in Asia later during the 1980s. Notably in the U.S. political economists (those in political science and business administration) have raised serious questions as to the validity of the orthodox trade theories. However, most economists either deny or neglect what political economists have been saying. Despite elegant technical sophistication in traditional international trade theories, the essence of trade theories still remain naive. In this article, some basic problems are pointed out with a view to initiating more convincing trade theories in the light of actual economic development in the future.

DOI: 10.3233/HSM-1989-8107

Journal: Human Systems Management, vol. 8, no. 1, pp. 59-64, 1989