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Volume 4 Issue 3 2018 Article 1 Abstract available

Is Comparative Advantage Sustainable in International Trade?

Prof. Dr. Abdul Ghafoor Awan, Sonia Zahra

Published in
Volume 4, Issue 3
Year
2018
Pages
476–502

Abstract

The aim of this study is to examine whether comparative advantage is sustainable in international trade which is most important theory factor in the growth of the any economy. Our study conducted to find out the sustainability and also examine the principles of the comparative advantage in international trade by using a sample of four countries (Germany, China, Brazil, Japan) and variables such as ratio of real GDP, exchange rate, balance of payment and the unemployment rate in the context of famous trade theory "Heckscher-Ohlin (H-O) trade model" to determine the principles of the comparative advantage in international trade. We have adopted secondary data that has been collected from IMF, World Bank and Asian Development Bank,etc. In order to calculate results we used SPSS software. Our results show that sustainability in international trade is very difficult in the long run and it depends upon continuous innovation and policy continuation. In the short run, obtaining comparative advantage is possible but in the long run it appears impossible because every country is striving to catch up with its rival country.

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Published in

Vol 4 - No. 3 (July - Sept, 2018)

Volume 4, Issue 3 · 10 articles · published 2018

Cite this article

Prof. Dr. Abdul Ghafoor Awan, Sonia Zahra (2018). Is Comparative Advantage Sustainable in International Trade?. Global Journal of Management, Social Sciences and Humanities, 4(3), 476-502. https://gjmsweb.com/article/is-comparative-advantage-sustainable-in-international-trade-2d26aa2.html

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