In 1980 Deardorff, Dixit and Norman generalized the law of comparative advantage to show that the value of net imports at autarky prices (or "DDN index") is nonnegative, so that net imports are correlated with autarky prices. The DDN index can be decomposed into the sum of (i) the equivalent...

The book analyzes the evolution of the concept of comparative advantage from the eighteenth century to the present day. It examines the origins of the concept of comparative advantage, its current status within economic thought and its validity in today's global economy. This comprehensive book...