The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Tradable and Non-tradable Commodities

  • A. D. Woodland
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1773

Abstract

The distinction between internationally tradable and non-tradable commodities lies at the heart of the reason for the development of the theory of international trade as an area of economics distinct from the general theory of value. The existence of nontradable commodities as well as tradable commodities implies that some markets are domestic while others are international. Connections between the prices of these two sets of commodities have been the subject of the famous factor-price equalization and Stopler–Samueslon theorems. Non-tradable goods play a prominent role in the analysis of many problems, such as tariff reform, exchange rates and international transfers.

Keywords

Bastable, C. F. Complementarities Factor-price equalization Globalization Heckscher–Ohlin–Vanek model Interest rate differentials International portfolio Ccoice International trade theory Mill, J. S. Project evaluation Purchasing power parity Real exchange rates Reduced form analysis Ricardo, D. Rybczynski theorem Shadow pricing Sticky prices Stolper–Samuelson theorem Substitutes and complements Tariffs Terms of trade Torrens, R. Tradable and non-tradable commodities 
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • A. D. Woodland
    • 1
  1. 1.