An Assessment of Samuelson’s Ricardo-Sraffa Trade Model

DVOSKIN, ARIEL; BRONDINO, GABRIEL

International Journal of Political Economy

Taylor and Francis

Año: 2021 vol. 50 p. 351 - 368

0891-1916

This article assesses Samuelson?s attempt to introduce Sraffa?s frameworkof ?production of commodities by means of commodities? to the neoclassical-Ricardo trade model. We slightly modify Samuelson?s model to consider, on the one hand, more commodities than countries and, on the other hand, a positive rate of interest and full international (finance) capitalmobility. In the first case, comparative advantage is unable to predict thedirection of trade. In the second case, the principle does not warrant theexistence of trade. In conclusion, a closer look at the neoclassical-Ricardiantrade model through the lenses of Sraffa casts more doubts than certainties of the comparative advantage theory