Surveys of economic theory (volume ii growth and development) part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Surveys of economic theory (volume ii growth and development) part 2
Surveys of economic theory (volume ii growth and development) part 2
VICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 decade, attention has centered on two main questions: first, what determines the over-all rate of economic advance ?; second, what is the optimal allocation of given resources to promote growth? Analysis of the growth rate has relied mainly on the Keynesian tools and has produced a multiplicity of a Surveys of economic theory (volume ii growth and development) part 2 ggregate growth models. The second question, however, reopens more ancient economic issues, and their analysis must start from the classical and neo-cSurveys of economic theory (volume ii growth and development) part 2
lassical solutions. Only very recently have the two types of discussion tended to come together in the more comprehensive framework of general equilibVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 cording to which growth is promoted by specialization. The defenders of this principle draw their inspiration from David Ricardo, J. s. Mill, and Alfred Marshall, while the fines of attack stem from Friedrich List, J. A. Schumpeter, A. A. Young, and J. H. Williams. The chief criticism is that compar Surveys of economic theory (volume ii growth and development) part 2 ative advantage is essentially a static concept which ignores a variety of dynamic elements.This issue is of great practical importance to the governmSurveys of economic theory (volume ii growth and development) part 2
ents of underdeveloped countries, most of which take an active part in allocating investment funds and other scarce resources. The main purpose of theVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 les from international trade theory, while its critics base their analysis on modem growth theory. Elements of a dynamic, general-equilibrium theory are needed to resolve the differences between the two approaches. The more general analysis is of very limited value, however, unless its empirical imp Surveys of economic theory (volume ii growth and development) part 2 lications can be ascertained.The present paper discusses the analysis of resource allocation in less-developed economics from three points of view. SeSurveys of economic theory (volume ii growth and development) part 2
ction I tries to ascertain the extent to which the allocation principles derived from trade theory and1 The author is Professor at Harvard University.VICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 undation for Research in Economics under Task NR 047-006 Office of Naval Research.126SURVEYS OF ECONOMIC THEORY: IIfrom growth theory ran be reconciled with each other without losing their operational significance. Section II compares various approaches to the measurement of optimal resource allocat Surveys of economic theory (volume ii growth and development) part 2 ion in terms of their logical consistency and their applicability to different conditions. Section III examines some of the practical procedures folloSurveys of economic theory (volume ii growth and development) part 2
wed in setting investment policy in underdeveloped countries in the light of the earlier discussion. Finally, some of the theoretical issues arc rc-cxVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 and other principles of resource allocation derive from their different orientation and assumptions. The classical analysis focuses on long-run tendencies and equilibrium conditions, while modem theories of growth arc concerned with the interaction among producing and consuming units in a dynamic s Surveys of economic theory (volume ii growth and development) part 2 ystem. Since both approaches arc familiar, I shall try to identify only the differences in assumptions and emphasis that lead to different policy concSurveys of economic theory (volume ii growth and development) part 2
lusions.A. The Implications of Comparative Advantage for Resource AllocationThe modern version of the comparative cost doctrine [20] is essentially a VICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 he opportunity cost of producing a given commodity with the price at which the commodity can be imported or exported. In equilibrium, no commodity is produced winch could be imported at lower cost, and exports are expanded until marginal revenue equals marginal cost. Under the assumptions of full em Surveys of economic theory (volume ii growth and development) part 2 ployment and perfect competition, the opportunitycost of a commodity, which is the value of the factors used to produce it in their best alternative eSurveys of economic theory (volume ii growth and development) part 2
mployment, is equal to its market value. Market prices of factors and commodities can therefore be used to determine comparative advantage under compeVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 comparative cost doctrine lias been widely recommended as a basis for development policy because it provides a measure of comparative advantage that docs not depend on the existence of perfect competition and initial equilibrium. This version states that a country will benefit from trade by' produc Surveys of economic theory (volume ii growth and development) part 2 ing commodities that use more of its relatively abundant factors of production. It will export these commodities and import commodities using more ofSurveys of economic theory (volume ii growth and development) part 2
its relatively scarce factors unless its pattern of domestic demand happens to be biased toward commodities using domestic factors. The critical assumVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 parative advantage ’’ and “ comparative cost ” are used interchangeably in moat discussions.CHENERY: DEVELOPMENT POLICY127factors of production arc comparable among countries and that production functions arc the same. These assumptions are not required by classical trade theory.The applicability of Surveys of economic theory (volume ii growth and development) part 2 the comparative cost doctrine to present-day conditions in underdeveloped countries has been re-examined by Viner and its validity has been reaffirmeSurveys of economic theory (volume ii growth and development) part 2
d with some modifications. Viner criticizes the Hcckschcr-Ohlin version because its assumption of comparable factors docs allow for observable differeVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 reting comparative advantage in a dynamic setting in which the efficiency of production may change over time, external economics may exist, and the market prices of commodities and factors may differ from their opportunity cost. As Nurkse points out [64, p. 76], these modifications rob the original Surveys of economic theory (volume ii growth and development) part 2 doctrine of much of its practical value. It is now necessary to have an explicit analysis of the growth process itself before it is possible to determSurveys of economic theory (volume ii growth and development) part 2
ine, even theoretically, where comparative advantage lies; market prices and current opportunity costs are no longer sufficient.B. Implications of GroVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 related sectors of the economy. In die writings of such economists as Roscnstcin-Rodan [43], Louts [29], Nurkse [36], Myrdal [34], Rostow [44], Dobb [12], and Hừschman [23], diere is much more emphasis on the sequence of expansion of production and factor use by sector than on the conditions of gene Surveys of economic theory (volume ii growth and development) part 2 ral equilibrium. Growth theory either ignores comparative advantage and the possibilities of trade completely, or it considers mainly the dynamic aspeSurveys of economic theory (volume ii growth and development) part 2
cts, such as the stimulus that an increase in exports provides to the development of related sectors 01 the function of imports as a carrier of new prVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 those derived from considerations of comparative advantage.The conflicts between these two approaches to resource allocation may be traced either to differences in assumptions or to the inclusion of factors in one theory that arc omitted from the other. Growth theory contains at least four basic ass Surveys of economic theory (volume ii growth and development) part 2 umptions about underdeveloped economies that differ strongly from those underlying the comparative cost doctrine: (1) factor prices do not necessarilySurveys of economic theory (volume ii growth and development) part 2
reflect opportunity costs with any accuracy; (2) the quantity and quality of factors of production may change substantially over time, in part as a rVICOMPARATIVE ADVANTAGE AND DEVELOPMENT POLICYByHOLLIS B. CHENERY ‘In the great revival of interest in economic development that has marked the past d Surveys of economic theory (volume ii growth and development) part 2 tion; (4) complementarity among commodities is dominant in both producer and consumer demand.128SURVEYS OF ECONOMIC THEORY: IISome of the implications of these factors are developed by Roscnstein-Rodan [43] and Nurkse [36] as arguments for “ balanced growth,” by which is meant simultaneous expansion Surveys of economic theory (volume ii growth and development) part 2 of a number of sectors of production.1 Assuming an elastic supply of either capital or labor, these authors show that investment will lie more profitSurveys of economic theory (volume ii growth and development) part 2
able in related sectors, because of horizontal and vertical interdependence, than in the same sectors considered separately. Market forces will not neGọi ngay
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