![]() On the contrary, it stipulates that free trade should always be accompanied by public policies that expand the provision of public education, job training, health care and infrastructure. The classical case for free trade formulated by Smith and Ricardo neither relies on unrealistic assumptions nor the laissez-faire doctrine. This restatement is based on the accurate interpretation of Ricardo’s famous numerical example in chapter 7 of the Principles. In this context, the core contribution of this dissertation is the restatement of the original free- trade case made by the classical political economists Adam Smith and David Ricardo. ![]() ![]() As is generally known, trade models featuring increasing returns to scale and imperfect competition have challenged the mainstream case for free trade which is built upon unrealistic assumptions like constant return to scale and perfect competition. The central aim of this dissertation is to make an unambiguous international trade policy recommendation for developing countries grounded on rigorous economic theory.
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