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Originally Posted by PeteEU  I have told you time and time again, its a theory, hence not directly appliable in the real world without huge changes. |
And I’ve told you how ignorant that comment is. First, comparative advantage is required to understand why trade is not a zero sum game. Second, the only issue is the extent that 'new trade theory' is required: i.e. comparative advantage does not provide an understanding of intra-industry trade. We also have to refer to economies of scale and differentiated products to understand the overall trade patterns between developed countries. However, that is relevant to manufacturing.
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I have asked you for any evidence that the comparative advantage theory has been not only used but worked in the real world, and you have yet to provide any proof.
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Try David and Weinstein (2001, An Account of Global Factor Trade, American Economic Review, Vol 91, pp 1423-1454). This provides a test of the predictions of the Heckscher-Ohlin model of the determinants of comparative advantage. It finds that the model is consistent with the data, predicting 90% of the pattern of trade.
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And yes I dont want to waste my time trying to look for such a study, when anyone can see that the UK economy is far far better off than it was in 1973.
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You cannot just assume
ceteris paribus. You are therefore talking tosh and making dreadfully simple spurious conclusion. A rather strange tactic that I do not understand. I prefer to test hypothesis and follow good research practice.
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You have made it clear that you dont like "outsiders".
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A dreary attempt. I’ve merely referred to the economic gains for both home and foreign populations from removing EU distortions. I’ve crafted an argument totally free of negative nationalism. I’ve also referred to the importance of multilateralism and celebrated internationalism. Your insular “Old Europe” backward thinking has no place in a dynamic economic world.
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