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Comments on Professor Johnson’s Paper: 1

  • Richard E. Caves
Part of the International Economic Association Series book series (IEA)

Abstract

A few years ago, Professor Raymond Vernon asked, referring to the present generation of international trade theorists, ‘Why do you all have to be so neoclassical?’ He was piqued, I think, not by the relentless application of neoclassical rigour but rather by the stuffy adherence to respectably neo-classical assumptions. Professor Johnson’s exposition of a new theory based on institu­tional aspects of the discovery and dissemination of production and consumption knowledge, and the recent literature on which it builds, should provide cause for cheer. The new ideas about patterns of trade indeed constitute a highly important development for the future of international economic relations, both in explaining or predicting the structure of trade among nations and in shedding light on problems of international economic policy.

Keywords

Direct Investment Foreign Market Domestic Market Trade Pattern Trade Theory 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Linder, S. B., An Essay on Trade and Transformation ( Uppsala: Almqvist & Wiksell, 1961 ).Google Scholar
  2. Duesenberry, J. S., Income, Saving and the Theory of Consumer Behavior ( Cambridge: Harvard University Press, 1952 ).Google Scholar
  3. Hymer, S. H. H., ‘The International Operations of National Firms: a Study of Direct Investment’, unpublished Ph.D. dissertation, MIT, 1960.Google Scholar
  4. Vernon, R., ‘International Investment and International Trade in the Product Cycle’, Quarterly Journal of Economics, Lxxx (May 1966), pp. 190–207.Google Scholar
  5. Drèze, J, J., ‘Quelques Réflexions sereines sur l’adaptation de l’industrie belge au Marché Commun’, Comptes rendus des travaux de la Société Royale d’Économie Politique de Belgique, no. 275 (December 1960).Google Scholar
  6. Johnson, H. G., Comparative Cost and Commercial Policy Theory for a Developing World Economy ( Stockholm: Almqvist & Wiksell, 1968 ).Google Scholar
  7. Hirsch, S., Location of Industry and International Competitiveness ( Oxford: Clarendon Press, 1967 ).Google Scholar

Copyright information

© The International Economic Association 1969

Authors and Affiliations

  • Richard E. Caves
    • 1
  1. 1.Harvard UniversityUSA

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