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The 'paradox' of F. Graham (1890-1949): a study in the theory of international trade

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  • Roxana Bobulescu
Abstract
The aim of this paper is to investigate the origins of the protection argument based on increasing and decreasing returns to scale. The development of this theoretical framework is outlined in order to argue that F. Graham's demonstration consists of a synthesis of previous work. We then discuss the debate that took place in the 1930s, which ended with the rejection of Graham's argument as being a paradox or a theoretical curiosity.

Suggested Citation

  • Roxana Bobulescu, 2002. "The 'paradox' of F. Graham (1890-1949): a study in the theory of international trade," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 9(3), pages 402-429.
    • Handle: RePEc:taf:eujhet:v:9:y:2002:i:3:p:402-429
    DOI: 10.1080/09672560210149233
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    References listed on IDEAS

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    1. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    2. Ethier, Wilfred J, 1982. "Decreasing Costs in International Trade and Frank Graham's Argument for Protection," Econometrica, Econometric Society, vol. 50(5), pages 1243-1268, September.
    3. Frank D. Graham, 1923. "Some Aspects of Protection Further Considered," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 37(2), pages 199-227.
    4. Frank H. Knight, 1925. "On Decreasing Cost and Comparative Cost: A Rejoinder," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 39(2), pages 331-333.
    5. Panagariya, Arvind, 1981. "Variable Returns to Scale in Production and Patterns of Specialization," American Economic Review, American Economic Association, vol. 71(1), pages 221-230, March.
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