Globalisation, Comparative Advantage and the Changing Dynamics of Trade
The effects of globalisation have been at the forefront of public debate in recent
years, fuelled on the one hand by the large benefits of integrated markets, and on
the other hand, by the detrimental adjustment effects often experienced by many economies
as a result. Knowing how trade has been evolving over time and the role policy has
played in this evolution are critical to understanding the globalisation debate and
grasping the lessons for future policy development. The comparative advantage hypothesis
has been suggested as one of the principal explanations of international trade and
of the benefits associated with openness. It has also provided the intellectual underpinnings
for most trade policy in the past 50 years. This book collects OECD work that builds
on recent contributions to the theory and empirics of comparative advantage, putting
particular emphasis on the role policy can play in shaping trade.
Published on October 20, 2011