The Revidion of New Trade Theory A Perspektive of Science Philosophy

Abstract

This working paper intends to revise the new trade theory in order to get a lot of supporters. The working paper will encompass chronological and development of the international trade theory which is in detail will discuss three objects as follow: (i) foundation of ontology of revised version of the new trade theory; (ii) assumption of the foundation, and (iii) epistemology (methodology) level of revised version of the new trade theory. Chronologically, the development of the international trade theory will present the arising of the new trade theory as a complaint to orthodox system. The complaint gave a result in the form of the new trade theory, which is the object of the philosophical orientation. It is concern about supra-naturalism versus naturalism, foundation for economics ontology, positivism versus post-positivism, and the behavioral assumption in a theory of institutions. The orientation gives a framework of revised version of the new trade theory. The revised version as the new one proposed by this working paper concerns on the foundation of ontology and epistemology level of new trade theory. The working paper concluded that the revision of the new trade theory have to be developed on foundation of across-science ontology, viz. economics, politics, and social (sociology). This means at least there are three vision of human being, which can be elaborated to become elementary assumption as foundation for philosophy (ontology) of the new trade theory. They are human being as homo economicus, homo hominilupus, and homo hominisocius creatures. The human being with the three vision can be assumed as creature who pursue creative satisfaction. The assumption will be realistic if the existing institutions reduce the uncertainties involved in human being interaction. These uncertainties arise as a consequence of both the complexity of the problems solved and the problem-solving software possessed by each person. Along of revised version of the new trade theory is considering all positive and normative things, at epistemology level, the most appropriate methodology is pragmatism methodology. But to run this methodology it is needed an understanding on system analysis. Therefore, method of tetrahedron analysis and game theory are very required in application of revised version of the new trade theory. The working paper recommend that to make the powerful assumption (human being is creative satisfaction), it is necessary to pursue a deep study about human being from religion philosophy, human being philosophy, social philosophy, sociology, and psychology aspects.