Ricardian model and structure of Irish trade - comment

Abstract

Our choice of a value rather than a physical measure of labour productivity was a conscious decision, not an 'error'. The reasons for this choice were clearly stated on pp. 451-452, footnote 2, o f the article. The weakness o f the alternative approach is revealed by Davies' computations. They would appear to cover only a small proportion of Anglo-Irish Trade. In each industry, there is a wide range of products: this largely accounts for the apparent cross-trading between the two countries. To add together these products as if they were homogeneous means that the resulting labour productivity figure must be of doubtful meaning.