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Chapter 4: Technology: the classical approach

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Presentation on theme: "Chapter 4: Technology: the classical approach"— Presentation transcript:

1 Chapter 4: Technology: the classical approach
Charles van Marrewijk International Trade Chapter 4: Technology: the classical approach

2 4.2 Ricardian production possibility frontiers for Germany and China
Toys 120 20 China PPF 100 25 Germany PPF B A C D Cars

3 4.3 the terms of trade is 5 units of toys per car
120 China budgetline (slope = -5) German budgetline (slope = -5) G 25 Cars

4 4.4 trade triangles coincide in international equilibrium
Toys C 120 China trade triangle C2 China consumption G2 German consumption German trade triangle G 25 Cars

5 4.5 ratio of productivity in wheat to productivity in sugar cane

6 4.6 three countries and world production possibility frontier
Toys A B China PPF C Germany PPF America PPF D Cars

7 4.7 global Balassa index distribution; 2-digit sectors, 2013
density Balassa index

8 4.8 income per capita and services value added; % of GDP, 2014

9 4.9 income per capita and agriculture value added; % of GDP, 2014

10 4.10 labour productivity and income per capita


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