Study On The Classical Theory Of International Trade

At the beginning of the reform and opening up of Chinese economy, there has been great discussions in domestic academic circles with the purples to find out a theory that could be the suitable basis for the participating of China into the international division of labor, and the classical trade theory represented by the Ricardian comparative advantage has gained the great esteem, but at the same time it also could not acoid being criticized as Ricardo was unable to adhere his theory to the classical labor theory of value, and its effectiveness and relevance has either been questioned.However, the thinking of classical economists about international trade is profound, and the Ricardian comparative advantage theory has never been the terminal of the classical theory of international trade, thus it should be great significance at least in the study of the history of theory that the classical theory of international trade is being further investigated and discussed from its integrity of system.In the1st chapter of introduction, the literatures of the classical theory of international trade are refered to and sifted, and the framework and structure of this thesis is presented. In the2nd chapter, it is discussed firstly the foundation of the classical theory of international trade from the delimitation of classical Economics and the the theory of labor value. Secondly, the background of classical theory of international trade is explored from the critiques of mercantilism made by classical scholars on its viewpoint wealth and source of wealth. In the3rd chapter, the formation process of the classical theory system of international trade is studied with the foundation by the absolute cost theory of Adam Smith, the development by the Ricardian comparative cost theory and the perfection by John Mill’s reciprocal demand theory and international demand equation. As a core part of the thesis, this chapter especially highlights Mill’s reciprocal demands theory and international demand equation, as it has contributed within the framework of classical economic theory significantly to the complementation of classical theory system of international trade.In the4th chapter, the status of the classical international trade theory in doctrinal history and its practical significance are studied from the inheritance and development by new classical theory of the comparative advantage and the reciprocal demands theory, and as well as from the critiques and discarding of labor value theory, and a positive evaluation has finally been reached. In short, this paper finds out that if the classical theory of international trade is inquired with its full system, the perfectness of its theoretical frame is no less than the neo-classical theories of international trade, though the theoretical structure is very simple.