A Direct Test of the Theory of Comparative Advantage: The Case of Japan

@article{Bernhofen2004ADT,
  title={A Direct Test of the Theory of Comparative Advantage: The Case of Japan},
  author={Daniel M. Bernhofen and John C. Brown},
  journal={Journal of Political Economy},
  year={2004},
  volume={112},
  pages={48 - 67}
}
We exploit Japan’s sudden and complete opening up to international trade in the 1860s to test the empirical validity of one of the oldest and most fundamental propositions in economics: the theory of comparative advantage. Historical evidence supports the assertion that the characteristics of the Japanese economy at the time were compatible with the key assumptions of the neoclassical trade model. Using detailed product‐specific data on autarky prices and trade flows, we find that the autarky… 
An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan
We provide an empirical assessment of the comparative advantage gains from trade argument. We use Japan's nineteenth-century opening up to world commerce as a natural experiment to answer the
A Test of the Law of Comparative Advantage, Revisited
This paper reconsiders one of the fundamental results in trade theory: the law of comparative advantage (Deardorff, 1980, 1994) from an empirical point of view. The contribution of this paper is to
A test of the law of comparative advantage, revisited
This paper reconsiders one of the fundamental results in trade theory: the law of comparative advantage from an empirical point of view. The contribution of this paper is to conduct a test of the law
TESTS OF PRICE REGIME CHANGES AND THE STRONG LAW OF COMPARATIVE ADVANTAGE: THE NATURAL EXPERIMENT OF JAPAN
We provide new tests on the neoclassical trade model in the context of the natural experiment of Japan. First, the neoclassical trade model assumes that international trade affects a small open
On Testing the Law of Comparative Advantage
This paper reconsiders the law of comparative advantage (Deardorff, 1980, 1994) from an empirical point of view. I show that not only net exports valued at autarky prices but also those valued at
The Empirics of General Equilibrium Trade Theory: What Have We Learned?
This paper provides a selective survey of over half a century of research linking the neoclassical trade model to the data. Three lessons stand out. First, competitive and new trade theory models are
Testing the General Validity of the Heckscher-Ohlin Theorem: The Natural Experiment of Japan
We exploit Japan’s 19th century move from autarky to free trade to provide the first test of the general validity of the price formulation of the Heckscher-Ohlin theorem. In this formulation a
The Empirics of Comparative Advantage: Overcoming the Tyranny of Nonrefutability
I assess the empirical evidence on comparative advantage. I argue that the Heckscher-Ohlin-Vanek (HOV) relationship is not a refutable general-equilibrium proposition. Consequently, the empirical
The Empirics of Comparative Advantage: Overcoming the Tyranny of Non-Refutability
I assess the empirical evidence on comparative advantage. I argue that the Heckscher-Ohlin-Vanek (H-O-V) relationship is not a refutable general equilibrium proposition. Consequently, the empirical
1 AN EMPIRICAL ASSESSMENT OF THE CHAIN OF COMPARATIVE ADVANTAGE : or HOW WELL DOES THE ECON 101 MODEL PREDICT THE PATTERN OF TRADE ?
Single market (or partial equilibrium) textbook analysis predicts the pattern of goods trade by price comparisons between free trade and autarky. General equilibrium analysis suggests that simple
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 90 REFERENCES
The General Validity of the Law of Comparative Advantage
It is well known that the law of comparative advantage breaks down when applied to individual commodities or pairs of commodities in a many-commodity world. This paper shows that the law is
Effect on Prices of Japan's Entry into World Commerce after 1858
  • J. Huber
  • Economics
    Journal of Political Economy
  • 1971
What happened to price ratios between exportables and importables in Japan as that country moved out of self-imposed economic isolation (ended in 1858) into free trade (the 1870s)? Average prices of
Theory Of International Trade
This book expounds trade theory emphasizing that a trading equilibrium is general rather than partial, and is often best modelled using dual or envelope functions. This yields a compact treatment of
The Law of Comparative Advantage without Social Utility Functions
This paper derives sufficient conditions under which the Law of Comparative Advantage and the General Law of Comparative Advantage are true when the preferences of the trading countries may not be
Theory of International Trade. A Dual, General Equilibrium Approach
This book expounds trade theory emphasizing that a trading equilibrium is general rather than partial, and is often best modelled using dual or envelope functions. This yields a compact treatment of
Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy.
Market Structure and Foreign Trade presents a coherent theory of trade in the presence of market structures other than perfect competition. The theory it develops explains trade patterns, especially
The Origins of Japanese Trade Supremacy: Development and Technology in Asia from 1540 to the Pacific War
Part 1: TRADE AND THE TRADITIONAL ECONOMY The Japanese Trading World Before 1853 and the First Trade with Europeans The West and Japan before the Opening of the Ports Kaikoku: the Opening of Japan
The factor content of trade
Study of the factor content of trade has become a laboratory to test our ideas about how the key elements of endowments, production, absorption and trade fit together within a general equilibrium
Japan's industrialization in the world economy 1859-1899 : export trade and overseas competition
An analysis of Japan's industrialization in an international, historical and economic perspective, from the time that her ports were first opened to foreign trade. First published in 1988, this title
...
1
2
3
4
5
...