Global Journal of Economic and Finance Research

David Ricardo’s theory of comparative advantage has long been a cornerstone of international trade economics. However, the rise of the digital economy and artificial intelligence (AI) challenges the foundational assumptions of the Ricardian model. This article critically examines the contemporary relevance of Ricardo’s theory by analyzing how digitalization, automation, and the dominance of digital platforms are reshaping the determinants of economic specialization. Through a theoretical review of recent literature, we argue that traditional comparative advantage, based on relative labor costs, is being replaced by new forms of advantage rooted in knowledge, innovation, and data control. We present theoretical reformulations and alternative models, such as dynamic comparative advantage and Porter’s competitive advantage framework, to better understand the emerging global economic geography. We conclude that, while the principle of specialization remains relevant, the Ricardian model must be fundamentally rethought in a world shaped by artificial intelligence and global digital networks.

comparative advantage, artificial intelligence, international trade, digital economy, David Ricardo, digital platforms

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