Reassessing the Theory of Comparative Advantage

Abstract

This paper is a reassessment of the theory of comparative advantage and the policy of laissez-faire that has generally been built upon it. The method of analysis will be conceptual as the intent is to examine some of the more problematic assumptions and sometimes implicit preconceptions that underlie the model. In particular, it will be demonstrated that what often passes for a consistent and rigorous defence of free trade is neither. The paper ends with a plea for the re-introduction of a more historical and comparative approach to the trade policy debate.