main contributions of the international trade theories

1)FIRST THEORIES: MERCANTILISTS, CLASSICS AND NEOCLASSIC

2) "INTERNATIONAL TRADE "NEW THEORIES"

LAST THEORIES

RECENT THEORIES

Mercantilists and the positive trade balance

Smith and absolute advantages

Ricardo and comparative advantage

H-O Model and abundancy factors

H-O model empiric problems

Imperfect Competition and Scale Economies

Structuralism

Intra-Industrial trade: Firsts tries

Monopoly competition

reciprocal dumping model

Scale economies

Center-periphery

Dependency theory

Evolutionism

Stylized facts

Models with heterogeneous firms

Sunk costs matter

Causality between productivity
and export status

Financial restrictions

Global value chains

Services

Exports Complexity

towards a new model

the economic complexity of exports

Critics

last estudies

Firsts tries

Implications for international trade

Models

changes in the producer way

The growing relevance of the services

Models with services

The reason of the deindustrialization

Firsts systematic elaborations about the international trade

concern for the state, subject and object of monetary policy

The prosperity of a state depends on its capital

the world trade volume is unalterable

capital= gold

increase through a positive trade balance with others nations

its exports value beats the imports value

with a state intervention= protectionism

add the effects of the international trade in the economy functioning

LAISSEZ FRAIRE=economy liberalism

because a existing intrinsic natural order

make up a social good

the government has a null margin to intervene effectively in the economy

The key of a economy wealth is the economy grow

f(work division, workers productivity, wealth generation

Allow the exterior trade of national productive surplus

add a new value

for countries with absolute advantage

exchanges its surplus for the goods it wants but has no absolute advantage

For a existing international trade, the absolute differences aren't necessaries, with the relatives differences its enough

work

only one output factor

work productivity determined by the differences in the quantity of product obtained by work unit

limitations

the real exchange relation is not determined

it should be the opportunity cost
of the countries

resourcing

productivity factor

comparative advantage source

relative abundance of
factors of production

implications

indirect exchange of the factors

international trade tends to favor abundant domestic factors

a factor sourcing increase

factor price equalization

increase the product output

predictions are limited

the prediction of the prices equality its conditioned

there are cases of low exportations intensity comparing to its imports

with a high rate of capital-work

Strategy politic trade

countries simultaneously
export the same good

between nations with similar level of
development, tastes and preferences

for industrial products trade

for primary products trade

comparative advantage=factorial sourcing

comparative advantage= representative demand

from a non-limited point of view

product life cycle (Vernon-1966)

mature product

new product

standardized product

the products are exchanged in a market where exists a market dominion

causes

entrance barriers

excepting commodities

hypothesis

scale increasing returns

consumer preferences

exporting enterprise

exported products

national market

cheaper price

higher price

prices discrimination

external

internal

unity cost depends on industry size

Unity cost depends on a enterprise size

many small enterprises

big enterprises with a price advantage

imperfect competition

perfect competition

based on the potential benefits from a tariff or a monetary policy instrument

its purpose is to promote a protect a determined industry sector

modify the strategy interaction produced in a determined sector between national and international enterprises

benefits distributions in the international trad is not equitable

favors developed countries more than developing ones

developed countries=specialized in manufactured with a diversified and homogeneous structure

developing countries=produce primary products with a specialized and heterogenous structure

uneven evolution of international trade prices

Underdevelopment is an inevitable consequence of the world economic system

produce a commercial, financial and technological dependency

of the developing economien on the developed economies

solution

industrialization of the peripheric economies

capacity for endogenous transformation

driven by

innovation

echnological change

systematic process

caused by systematic interactions between firms and institutions

good firms become exporters and
not the other way around

the most productive

Evidence that exporting firms perform better than those participating in the domestic market

pay higher wages

employ a high quantity of employees

higher outcome

most capita and technological intensives

"self-selection"

firms with different outcome levels coexists in a industry because of the uncertainty about their productivity

export decision happens after know its outcome level

most productive firms expand and displace the less productive

industries vary in factorial intensity

enterprises have different productivities

in the entrance to the export market

explain why the aggregate exports answer to different levels of liberalized commerce

export decision depends on

past exporting state

observable characteristics that
affect future export earnings

firms demand foreign flows to meet costs that cannot be financed by savings

exporter enterprises depends more on financing than the non-exporters

higher foreign demand for domestic bonds

increase the exportations of vulnerable financial sector

increase the economy general credit

categorize assets according to their desirability in facilitating economic growth

externality

some goods allow a easier transition to others goods then a dynamic process of continue grow

value chains play a important role

socialize the cost discovery of some good

"self-discovery"

PRODY

Productivity-income index

higher index=most product exported by developing countries

low index=most product exported by developed countries

goods exported by high-income countries are already supplied by competitive economies

there is a compensation effect

economy complexity

seeks to contemplate

the capabilities

knowledge

infrastructure

logistics

that a country has when it produces a certain good

resume in two indexes

(ICP)
product complexity index

(ICE)
economy complexity index

How complex is it to produce a product based on the productive capacities of the countries?

products space

good trends to require similar capacities in its output

Argentina provinces-Plamieri(2017(

How complex is it to produce a product based on the productive capacities of the countries?

the greater the complexity, the greater the value of exports

the most complex provinces have more exporting companies

The greater complexity, most exported products variety

The most complex provinces pay higher wages

Enterprises distribute its production around all the word

"good produced by the world"

fast develop on

TIC

low transport costs

trade liberalization

IED

countries specialize in productive activities and not in industries

intermedium products are exchanged until its final assemble

enterprises who coordinate global value chains are located in developed countries

while its providers are firms located in developing countries

depends on the type of country

If it is a developed country

on the supply side, technological progress in manufacturing increases the productivity of the labor factor.

On the demand side, there is a change in consumer preferences.

if it is a developing country

reduce the output and the manufacturer work assignment in developed countries

transferring the productive system through GVCs to developing countries

service exports have become the most dynamic item in world trade

represents 75% of the IED

Represents more than the 60% of the total employment

represents the 7% of the world PIB

3 different characteristic of the services trade

services rationed with the international trade=goods trade subproduct

services trade frequently needs IED

good can be produced in different places to where them are consumed, but not the services