The Business Model of Nations

In 1817, David Ricardo published his seminal work On the Principles of Political Economy and Taxation, in which he shows how international trade benefits nations under the premise that countries specialize in producing and exporting goods in which they hold a comparative advantage. This principle is closely linked to a key insight from international trade: What nations export is what they are good at. This paper of Stefan Legge and Christoph Rupp takes this idea to the data and analyzes exports to uncover deeper insights into countries’ comparative advantages and, by extension, to explore The Business Model of Nations.

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