Altering the pattern of trade in the wealth of nations
- There are three different interpretations of Adam Smith's trade theory in modern literature: first, the neoclassical theory of absolute advantage; second, an interpretation based on increasing returns; third, an interpretation of uneven development. These interpretations come to widely different conclusions, especially considering the development of the pattern of trade in Smith's theory. I discuss how these three interpretations emerged. They do not stem from a more detailed analysis of Smith's works itself but reflect changes within international trade theory. They all result from the fact that economists have imposed nineteenth- and twentieth-century modes of thoughts on Smith's theory, forcing his writings into later-developed theoretical frameworks. In contrast to classical economists in the nineteenth century, these subsequent interpretations misrepresent Smith's trade theory in order to portray him as a forerunner of later theories. The differing interpretations can thus be explained only against the backdrop of the developmentThere are three different interpretations of Adam Smith's trade theory in modern literature: first, the neoclassical theory of absolute advantage; second, an interpretation based on increasing returns; third, an interpretation of uneven development. These interpretations come to widely different conclusions, especially considering the development of the pattern of trade in Smith's theory. I discuss how these three interpretations emerged. They do not stem from a more detailed analysis of Smith's works itself but reflect changes within international trade theory. They all result from the fact that economists have imposed nineteenth- and twentieth-century modes of thoughts on Smith's theory, forcing his writings into later-developed theoretical frameworks. In contrast to classical economists in the nineteenth century, these subsequent interpretations misrepresent Smith's trade theory in order to portray him as a forerunner of later theories. The differing interpretations can thus be explained only against the backdrop of the development of international trade theory.…
Author details: | Reinhard SchumacherORCiDGND |
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DOI: | https://doi.org/10.1017/S1053837219000130 |
ISSN: | 1053-8372 |
ISSN: | 1469-9656 |
Title of parent work (English): | Journal of the history of economic thought |
Subtitle (English): | Adam Smith and the historiography of international trade theory |
Publisher: | Cambridge University Press |
Place of publishing: | New York |
Publication type: | Article |
Language: | English |
Date of first publication: | 2020/02/04 |
Publication year: | 2020 |
Release date: | 2023/01/16 |
Volume: | 42 |
Issue: | 1 |
Article number: | PII S1053837219000130 |
Number of pages: | 24 |
First page: | 19 |
Last Page: | 42 |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Sozialwissenschaften / Fachgruppe Politik- & Verwaltungswissenschaft |
DDC classification: | 3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften |
3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft | |
Peer review: | Referiert |