Abstract
Traditional international trade theory is mainly based on comparative advantage. In fact, structure of international trade is more complicated than what is illustrated by theory, which affects illustrating ability of traditional international trade theory. By introducing organizational capital and combing it with specialization and scale economy, this paper interpreted intra-industry and inter-industry trade and put forward relevant suggestions for policy.
Highlights
Traditional international trade theory is mainly based on comparative advantage
David Ricardo’s Theory of Comparative Cost and Theory of Comparative Advantage are evolved from differences of labor productivity between two countries in trade
The H-O Theory emphasizes on difference of factor endowment instead of difference of labor productivity, thinking that structure of international trade takes difference of factor endowment as a precondition, and every country produces and exports the goods that consume domestic rich factors and imports the goods that intensively consume domestic scarce factors
Summary
Traditional international trade theory is mainly based on comparative advantage. The intra-industry trade theory is based on increasing returns and imperfect competition, by which to explain the intra-industry trade Some domestic scholars, such as Zengqiang Fan and Tao Shang (2006) bring organization capital into a comparative advantage framework to explain the developed countries’ comparative advantages over developing countries in international trade and international value-chain division. In their opinion, human capital and organization capital are different factors that impact comparative advantage. They introduce organization capital into national trade analysis for an initial try, which explores the traditional comparative advantage theory. By introducing the organizational capital, this paper studies the relationship between organizational capital and international trade structure from micro and macro angles, and advances relevant policy suggestions
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