Shared advantage just means the gains from trade or productivity are widely distributed across the population instead of concentrated in a small group. It is not a new theory, just a way to highlight that comparative advantage only delivers on its promise when institutions make sure the benefits reach more than a few insiders.
One real-world example is South Korea after the 196s. The government supported export industries but also invested heavily in education, infrastructure, and land reform. As manufacturing grew and trade expanded, the benefits went beyond the elite. Wages rose, living standards improved, and the economy diversified. Compare that with oil-rich states where export profits often stay in the hands of a narrow political class same trade logic, totally different outcomes because the distribution mechanism is broken.
Trade creates the potential for advantage. Good institutions decide whether that advantage is shared...
Shared advantage just means the gains from trade or productivity are widely distributed across the population instead of concentrated in a small group. It is not a new theory, just a way to highlight that comparative advantage only delivers on its promise when institutions make sure the benefits reach more than a few insiders.
One real-world example is South Korea after the 196s. The government supported export industries but also invested heavily in education, infrastructure, and land reform. As manufacturing grew and trade expanded, the benefits went beyond the elite. Wages rose, living standards improved, and the economy diversified. Compare that with oil-rich states where export profits often stay in the hands of a narrow political class same trade logic, totally different outcomes because the distribution mechanism is broken.
Trade creates the potential for advantage. Good institutions decide whether that advantage is shared...