On Graham’s Theory of Multicountry Multicommodity Trade

Mathematical formulations of Frank D. Graham’s theory of multicountry multicommodity trade have not provided numerical methods for finding the world trade equilibrium. Graham was in possession of such methods but his writings do not reveal what they were. This paper proposes an algorithm for finding Graham’s world trade equilibrium. Modifications to the algorithm that are needed to cover such subjects as intercountry transfers, tariffs and taxes, have been illustrated. Further, it is shown that Graham’s theory can be extended to accommodate international trade in intermediate capital goods. URL: [http://210.212.173.67/pdfs/working%20papers/wp23.pdf].