POST CLASSICAL AND NEOCLASSICAL PERIOD: INTERNATIONAL TRADE

POST CLASSICAL AND NEOCLASSICAL PERIOD: INTERNATIONAL TRADE



Mercantilism comes after classical period. This fact led to a "new theory" (neoclassical) which, after a while, kept away the main lines of the evolution of the economy from researching in the long run. This section deals with the distinction between international trade and economic growth theories and presents some of the responses given to classical and neoclassical theories

Those who followed Ricardo did not take into account the bases of comparative advantages and did not identify the rates and trends stemming from international trade that could increase the long term.The theory of comparative advantages, the model of Ricardo, has been adopted by many politicians then the heckscher-ohlin model cames and they have organized new economic models. After these models it is clearly seen that international trade affects economic growth positively. Particularly in the 1960s, export-oriented policies were made and export significantly increased thus, it affect GDP positively. Also the same policies are still applied today.