The law of comparative advantage that defines modern global trade was not actually invented by David Ricardo.
Classical economists like David Ricardo actually followed a much simpler rule of absolute price specialization. Every economics student for over a century has been taught that Ricardo is the father of this fundamental trade pillar. A deep dive into the historical texts reveals that this attribution is the result of a long-running misinterpretation by later scholars. The original thinkers were focused on direct costs rather than the complex relative advantages we credit them with today. This shift changes the historical narrative of how humans first understood the benefits of international exchange.
An Astonishing Turn in the Attribution Debate on the Law of Comparative Advantage
SocArXiv · 4h5ks_v1
The law of comparative advantage cannot be attributed to David Ricardo, James Mill, Robert Torrens or John Stuart Mill. Their writings, much like those of Adam Smith, strictly adhere to the classical rule for specialization, which asserts that one should acquire commodities abroad whenever offered cheaper than it would cost to produce them locally. They all viewed the cheaper price of foreign commodities as the logical starting point and condicio sine qua non of most exchanges between countries.