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YOU ARE WELCOME ! 1 International Economics 國際經(jīng)濟(jì)學(xué) 主講:余道先 2 Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 勞動(dòng)生產(chǎn)率和比較優(yōu)勢:李嘉圖模型 3 Preview ? Introduction ? The Concept of Comparative Advantage( 比較優(yōu)勢 ) ? A OneFactor Economy( 單一要素經(jīng)濟(jì) ) ? Trade in a OneFactor World( 單一要素世界的貿(mào)易 ) ? Comparative Advantage with Many Goods( 多種產(chǎn)品的比較優(yōu)勢 ) ? Adding Transport Costs and Nontraded Goods( 引入運(yùn)輸成本和非貿(mào)易品 ) ? Empirical Evidence on the Ricardian Model ? Summary 4 ? Countries engage in international trade for two basic reasons: ? They are different from each other in terms of climate, land, capital, labor, and technology. ? They try to achieve scale economies ( 規(guī)模經(jīng)濟(jì) )in production. ? The Ricardian model is based on technological differences across countries. ? These technological differences are reflected in differences in the productivity of labor. Introduction 5 ? The Ricardian model uses the concepts of opportunity cost and parative advantage. The Concept of Comparative Advantage 6 ? For example, On Valentine’s Day the . demand for roses is about 10 million roses. ? Growing roses in the . in the winter is difficult. ? Heated greenhouses should be used. ? The costs for energy, capital, and labor are substantial. ? Resources for the production of roses could be used to produce other goods, say puters. The Concept of Comparative Advantage 7 ? Opportunity Cost( 機(jī)會成本 ) ? The opportunity cost of roses in terms of puters is the number of puters that could be produced with the same resources as a given number of roses. ? Comparative Advantage( 比較優(yōu)勢 ) ? A country has a parative advantage in producing a goods if the opportunity cost of producing that goods in terms of other goods is lower in that country than it is in other countries. 如果一個(gè)國家在本國生產(chǎn)某種產(chǎn)品的機(jī)會成本(用其他產(chǎn)品來衡量)低于在其他國家生產(chǎn)該種產(chǎn)品的機(jī)會成本的話,則這個(gè)國家在該種產(chǎn)品的生產(chǎn)上具有比較優(yōu)勢。 The Concept of Comparative Advantage 8 ? Suppose that in the . 10 million roses can be produced with the same resources as 100,000 puters. ? Suppose also that in South America 10 million roses can be produced with the same resources as 30,000 puters. ? This example assumes that South American workers are less productive than . workers. The Concept of Comparative Advantage 9 ? If each country specializes in the production of the goods with lower opportunity costs, trade can be beneficial for both countries. ? Roses have lower opportunity costs in South America. ? Computers have lower opportunity costs in the . ? The benefits from trade can be seen by considering the changes in production of roses and puters in both countries. The Concept of Comparative Advantage 10 Table 31: Hypothetical Changes in Production The Concept of Comparative Advantage 11 ? The example in Table 31 illustrates the principle of parative advantage: ? If each country exports the goods in which it has parative advantage (lower opportunity costs), then all countries can in principle gain from trade.( 如果每個(gè)國家都出口本國具有比較優(yōu)勢的商品(低的機(jī)會成本),那么每個(gè)國家都會從貿(mào)易中受益 ) ? What determines parative advantage? ? Answering this question would help us understand how country differences determine the pattern of trade (which goods a country exports). The Concept of Comparative Advantage 12 A OneFactor Economy (單一要素經(jīng)濟(jì)) ? Assume that we are dealing with an economy (which we call Home). In this economy: ? Labor is the only factor of production. ? Only two goods (say wine and cheese) are produced. ? The supply of labor is fixed in each country. ? The productivity of labor in each goods is fixed. ? Perfect petition prevails in all markets. 13 ? The technology of Home’s economy can be summarized by labor productivity in each industry, expressed in terms of unit labor requirements: ? The unit labor requirement is the number of hours of labor required to produce one unit of output. ? Denote with aLW the unit labor requirement for wine (. if aLW = 2, then one needs 2 hours of labor to produce one gallon of wine). ? Denote with aLC the unit labor requirement for cheese (. if aLC = 1, then one needs 1 hour of labor to produce a pound of cheese). A OneFactor Economy 14 ? The economy’s total resources are defined as L, the total labor supply. . if L = 120, then this economy is endowed with 120