An Assessment of the Nexus Between the Ricardian Thoughts on Comparative Advantage and Circular Economy in Developing Economies
摘要
Economics for sustainable development enables us to appreciate the factors that promote and enhance the quality of life. The nascent drive towards sustainability requires national economies to identify and evolve their ingenious resources for sustainability that are consistent with their capacity. Identifying strength and ingenuities can birth effective global interdependencies and possibly lead to trade where comparative advantages are effectively harnessed for sustainable development. The Ricardian theory of comparative advantage postulates that “nations can gain an international trade advantage when they focus on producing goods with the lowest opportunity costs compared to other nations”. The drive towards a circular economy can serve as part of the fulfillment of this mandate through production and utilization of environmentally compliant products. However, the comparative advantage can be larger when Indigenous technology of production embraces waste conversion into other products of environmental and economic value. Therefore, based on the proposition of David Ricardo, this study assesses the plausibility of negotiating economic activities from the area of strength for the emancipation of developing economies, such that they can benefit from trading activities by concentrating their efforts on innovatively harnessing and developing sustainably the things they are best at.