Ari Kokko. GATT and WTO based on neo-classical trade theory. All countries gain from tradeMore trade = more benefitsAll industries equalFree trade is optimalSpecialization in areas of comparative advantage is optimal. Ari Kokko. . . Problems with neo-classical trade theory. Some of the assumptions in the models are not realisticthe world does not have perfect competition, identical preferences, constant returns to scaleEmpirical findings have contradicted the predictions of the models 29
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