An empirical assessment of factors shaping regional competitiveness in problem regions. Vol. 3 : Factors shaping regional competitiveness revealed in theoretical and empirical investigations

The pattern of international trade has been understood conventionally on the basis of the theory of comparative advantage. The determination of the comparative advantage is regarded mostly from the viewpoint of the long-run equilibrium (see Negishi, 1972). In spite of the refinement and the redefinition after introduction of the Leontief Paradox, it has been increasingly evident that the traditional theory does not do an adequate job of explaining the pattern of modern trade. In recent years, discontent with traditional trade theory has finally surfaced in the form of new models offering alternative approaches. These new approaches, which are mainly based on concepts in the field of industrial organization, break with traditional analysis by stressing the importance of increasing returns to scale and imperfect competition in understanding how the international economy works. In the following, the development of comparative advantage in trade theory is demonstrated.

Der zusammenfassende Hauptbericht (Vol. I: Main Report) wurde von der EG-Kommission in der Reihe "Documents Publics" veröffentlicht. Er ist zu beziehen bei der Bundesanzeiger Verlagsgesellschaft mbH, Breite Straße 78-80, 50667 Köln.