By Fritz Machlup (auth.)
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Additional resources for A History of Thought on Economic Integration
A good many economists have declared that a customs union was politically impossible without simultaneous or preceding political integration. Other economists, however, were convinced that closer political relations and, eventually, peace among the nations, could be achieved only by means of economic co-operation and co-ordination ahead of political unification. For example, Vilfredo Pareto, speaking at a Peace Congress in Rome, in 1889, saw customs unions and other international economic arrangements as means to better political relations and eventual pacification.
Part Three will be predominantly historical, as it will review the expressed opinions of hundreds of men who wrote and talked about economic integration. The two chapters of Part Two, however, cannot be called historical in character -unless one is prepared to have history without names and without dates. Time, place, and people are part and parcel of historical research, and none of these will be found in Part Two. Nevertheless, a strong claim can be made for its relevance in a history of thought, for it is devoted to an analysis of the idea the history of which will be presented in Part Three.
That wine is cheaper in sunny Portugal than in England if its cost is compared in hours of labour required per unit of output seems trivially obvious. If cloth could be produced in England with less hours of labour per unit than in Portugal, the advantages of trade would seem self-evident in terms of 'absolute' input-output ratios. Things would be different, however, if both 1 Students may be easily confused by writers speaking of 'specialisation in the production of good A' without making it clear whether they mean the process of producing more of product A and less of B, or the state of producing only product A (complete specialisation).
A History of Thought on Economic Integration by Fritz Machlup (auth.)