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Deconstructing The Mythology Of Free Trade: Critical Reflections On Comparative Advantage, Carmen G. Gonzalez

Carmen G. Gonzalez

The theory of comparative advantage serves as the theoretical justification for the neoliberal economic reforms promoted by the International Monetary Fund, the World Bank, and multilateral and regional free trade agreements. This article employs insights from both neoclassical and heterodox economics in order to critique the theory of comparative advantage as applied to the agricultural sector. In particular, the article takes aim at the illusory notion that eliminating distortions in international agricultural trade caused by the lavish agricultural subsidies of wealthy nations will be sufficient to “level the playing field” and promote prosperity in both developed and developing countries. The …