Comparative Advantage and Development Policy

  • Hollis B. Chenery


In the great revival of interest in economic development that has marked the past 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 aggregate growth models. The second question, however, reopens more ancient economic issues, and their analysis must start from the classical and neo-classical solutions. Only very recently have the two types of discussion tended to come together in the more comprehensive framework of general equilibrium analysis.


Development Policy Foreign Exchange Comparative Advantage Shadow Price Growth Theory 


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© The Royal Economic Society and the American Economic Association 1965

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  • Hollis B. Chenery

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