Manoilescu's Approach of "Losses of Trade": a Ricardian Interpretation
Authors: Nikolay Nenovsky, Dominique Torre
Abstract
This paper contributes to a testament of the conclusions of Manoilescu, the validity of which we test analytically. We develop a model proving that the Manoilescu assumption can be integrated into a Ricardian setting. We find that in some cases, traditional domestic sectors should be protected, even if the law of comparative advantages suggests another solution.