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Nigeria is poor because they believe in the concept of comparative advantage. Anyone who doesn't believe in the concept of comparative advantage knows that ever
by imtringued 2y ago
Nigeria is poor because they believe in the concept of comparative advantage. Anyone who doesn't believe in the concept of comparative advantage knows that every country needs to invest in a large variety of industries even if they aren't world leaders and not be overly dependent on a single industry.
There is also the problem that a lot of comparative advantages were "created" and not the result of some endowment of resources or geography. You can tell a comparative advantage story after the fact, but you can't derive much policy from it since it is by definition status quo bias.
The status quo is optimal, therefore any deviation would result in suboptimality. That is how economists think.