Study On The Integrated Comparative Advantage Theory

Because of the mistake of several school of Comparative Advantage Theories and the controversy in the between of traditional Comparative Advantage Theories ,New Trade Theories and Competitive Advantage Theories , the important of Comparative Advantage Theory in international trade theory has been weaken. On the base of integrating and summing up the thought and model of several school of Comparative Advantage Theories, this paper proposes Integrated Comparative Advantage Theory (ICA).This paper expounds the thought of Comparative Advantage Theory (ICA). A series of model , systemic testing index, methods and database of Integrated Comparative Advantage have been set up to confirming ICA . With ICA this dissertation also comments five Comparative Advantage Theories .Result as follow:ICA has Integrated several school of Comparative Advantage Theories and extended means of comparative advantage .A model of ICA has been set up with introducing three advantage functions and the effecting factors of the technology, labor, capital and so on. On the basis of change of integrated comparative advantage after division of labor , this model also measures the product advantage, trade advantage and demand advantage . This paper make a further investigation on the trade construction , advantage of division of labor, trade basis, trade condition and trade profit of participant . ICA has unified the model of inter-industry trade and intra-industry trade and main models of international trade theory, and give out a new idea and frame which studies on comparative advantage.This paper has also taken a careful review of the relation the between ICA and other Comparative Advantage Theories, and given out some issues which have still been studying. And the controversy in. the between of the Comparative Advantage theories ,Competitive Advantage theories and back-ware advantage theories has examined. This paper has also exposed relation of economic development , international trade and comparative advantage.The result shows that the correlation between export index and Integrated Comparative Advantage index, and the correlation between surplus index and Integrated Comparative Advantage index is positive. Integrated Comparative Advantage Theory can explain the phenomenon of International trade. This paper also give out main reasons for a quick increase in the volume of export and the surplus from China to USA.Some disadvantages and limitation of data, index and model are presented. Therefore, ICA has been proved successfully, though there is a long way to go in perfecting this new theory of international trade.