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INTERNATIONAL TRADE
International trade has been one of the most dynamic sub-fields of economics in recent years, with exciting new work on trade under imperfect competition as well as important extensions of existing models. This two volume set of readings synthesizes these contributions, including some rare classic articles as well as a representative selection of the best modern work. The editor’s introductions to the volumes, which contain extensive bibliographies, put the readings in perspective and in the process provide an overview of the current state of knowledge in the field.
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Critical Acclaim
Contributors
Contents
More Information
International trade has been one of the most dynamic sub-fields of economics in recent years, with exciting new work on trade under imperfect competition as well as important extensions of existing models. This two volume set of readings synthesizes these contributions, including some rare classic articles as well as a representative selection of the best modern work. The editor’s introductions to the volumes, which contain extensive bibliographies, put the readings in perspective and in the process provide an overview of the current state of knowledge in the field.
Critical Acclaim
‘The book is well-referenced and could be useful to students of microeconomics and as a reference text.’
– Aslib Book Guide
‘These two volumes cannot be recommended more highly for purchase by libraries in universities with specialist courses in international economies, and for use by students. The editor deserves great credit for having delineated such an impressive canon for the study of international trade. It will be invaluable for many years.’
– P. Sinclair, The Economic Journal
– Aslib Book Guide
‘These two volumes cannot be recommended more highly for purchase by libraries in universities with specialist courses in international economies, and for use by students. The editor deserves great credit for having delineated such an impressive canon for the study of international trade. It will be invaluable for many years.’
– P. Sinclair, The Economic Journal
Contributors
Contributors: J.N. Bhagwati, J.A. Brander, W.M. Corden, A. Dixit, W.J. Ethier, T. Hatta, E. Helpman, R.W. Jones, P.A. Krugman, R.A. Mundell, M. Ohyama, P.A. Samuelson
Contents
VOLUME I
CONTENTS
ACKNOWLEDGEMENTS
INTRODUCTION
PART I
INTERNATIONAL EXCHANGE
1. Robert A. Mundell (1968), ‘The Classical System; Transfers, Productivity, and Taxes; and Generalization of the Classical Model’
2. Makoto Yano (1983), ‘Welfare Aspects of the Transfer Problem’
3. Avinash Dixit (1983), ‘The Multi-Country Transfer Problem’
4. Ronald W. Jones (1985), ‘Income Effects and Paradoxes in the Theory of International Trade’
5. Avinash Dixit (1984), ‘Growth and Terms of Trade under Imperfect Competition’
PART II
TRADE POLICY AND THE GAINS FROM TRADE
A. Trade Policy in Competitive General Equilibrium
6. Michihiro Ohyama (1972), ‘Trade and Welfare in General Equilibrium’
7. Avinash Dixit and Victor Norman (1986), ‘Gains from Trade Without Lump-Sum Compensation’
8. Ronald W. Jones (1969), ‘Tariffs and Trade in General Equilibrium: Comment’
9. Tatsuo Hatta (1977), ‘A Theory of Piecemeal Policy Recommendations’
10. Wilfred Ethier (1977), ‘The Theory of Effective Protection in General Equilibrium: Effective-Rate Analogues of Nominal Rates’
B. Trade and Industrial Policy in Oliogopoly
11. James A. Brander and Barbara J. Spencer (1985), ‘Export Subsidies and International Market Share Rivalry’
12. Jonathan Eaton and Gene M. Grossman (1986), ‘Optimal Trade and Industrial Policy Under Oligopoly’
13. Avinash K. Dixit and Gene M. Grossman (1986), ‘Targeted Export Promotion With Several Oligopolistic Industries’
14. James A. Brander and Barbara J. Spencer (1984), ‘Trade Warfare: Tariffs and Cartels’
15. Victor D. Norman (1989), ‘Trade Policy Under Imperfect Competition: Theoretical Ambiguities - Empirical Regularities?’
C. Trade Policy with Entry, Monopolistic Competition and Increasing Returns
16. Anthony J. Venables (1985), ‘Trade and Trade Policy With Imperfect Competition: The Case of Identical Products and Free Entry’
17. Ignatius J. Horstmann and James R. Markusen (1986), ‘Up the Average Cost Curve: Inefficient Entry and the New Protectionism’
18. Wilfred J. Ethier (1982), ‘Decreasing Costs in International Trade and Frank Graham’s Argument for Protection’
19. Richard Harris (1984), ‘Applied General Equilibrium Analysis of Small Open Economies With Scale Economies and Imperfect Competition’
PART III QUANTITATIVE TRADE RESTRICTIONS
20. Peter Neary (1988), ‘Tariffs, Quotas, and Voluntary Export Restraints With and Without Internationally Mobile Capital’
21. Rodney E. Falvey (1979), ‘The Composition of Trade within Import-restricted Product Categories’
22. Jagdish Bhagwati (1965), ‘On the Equivalence of Tariffs and Quotas’
23. Richard Harris (1985), ‘Why Voluntary Export Restraints are “Voluntary”’
PART IV THE POLITICAL ECONOMY OF TRADE POLICY
24. Anne O. Krueger (1974), ‘The Political Economy of the Rent-Seeking Society’
25. Jagdish N. Bhagwati and T. N. Srinivasan (1980), ‘Revenue Seeking: A Generalization of the Theory of Tariffs’
26. Ronald Findlay and Stanislaw Wellisz (1982), ‘Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare’
27. Wolfgang Mayer (1984), ‘Endogenous Tariff Formation’
28. Arye L. Hillman and Heinrich W. Ursprung (1988), ‘Domestic Politics, Foreign Interests, and International Trade Policy’
PART V DOMESTIC DISTORTIONS AND OPTIMAL POLICY
29. W. M. Corden (1975), ‘Tariffs, Subsidies and the Terms of Trade’
30. Michihiro Ohyama (1972), ‘Domestic Distortions and the Theory of Tariffs’
31. W. M. Corden and R. Findlay (1975), ‘Urban Unemployment, Intersectoral Capital Mobility and Development Policy’
32. Sudhir Anand and Vijay Joshi (1979), ‘Domestic Distortions, Income Distribution and the Theory of Optimum Subsidy’
33. Dani Rodrik (1987), ‘Policy Targeting with Endogenous Distortions: Theory of Optimum Subsidy Revisited’
VOLUME II
PART I
PRODUCTION STRUCTURE AND COMPARATIVE STATICS
1. Paul A. Samuelson (1953-54), ‘Prices of Factors and Goods in General Equilibrium’
2. Ronald W. Jones (1965), ‘The Structure of Simple General Equilibrium Models’
3. Ronald W. Jones(1971), ‘A Three-Factor Model in Theory, Trade, and History’
4. J. Peter Neary (1978), ‘Short-Run Capital Specificity and the Pure Theory of International Trade’
5. F. H. Gruen and W. M. Corden (1970), ‘A Tariff that Worsens the Terms of Trade’
6. Wilfred Ethier (1974), ‘Some of the Theorems of International Trade with Many Goods and Factors’
PART II
THEORIES OF INTERNATIONAL TRADE
A: TRADE BASED ON COMPARATIVE ADVANTAGE
7. R. Dornbusch, S. Fischer and P. A. Samuelson (1977), ‘Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods’
8. Alan V. Deardorff (1980), ‘The General Validity of the Law of Comparative Advantage’
9. Jaroslav Vanel (1968), ‘The Factor Proportions Theory: The N-Factor Case’
10. Wilfred J. Ethier (1982), ‘The General Role of Factor Intensity in the Theorems of International Trade’
B: TRADE BASED ON INCREASING RETURNS
11. James R. Melvin (1969), ‘Increasing Returns to Scale as a Determinant of Trade’
12. Wilfred Ethier (1979), ‘Internationally Decreasing Costs and World Trade’
13. Paul Krugman (1980), ‘Scale Economies, Product Differentiation, and the Pattern of Trade’
14. Colin Lawrence and Pablo T. Spiller (1983), ‘Product Diversity, Economies of Scale, and International Trade’
C: TRADE BASED ON OLIGOPOLISTIC COMPETITION
15. James A. Brander (1981), ‘Intra-Industry Trade in Identical Commodities’
16. Anthony J. Venables (190), ‘International Capacity Choice and National Market Games’
PART III
TESTS OF TRADE THEORIES
17. Edward E. Learner (1980), ‘The Leontief Paradox, Reconsidered’
18. Richard A. Brecher and Ehsan U. Choudhri (1982), ‘The Leontief Paradox, Continued’
19. Harry P. Bowen, Edward E. Learner and Leo Sveikauskas (1987), ‘Multicountry, Multifactor Tests of the Factor Abundance Theory’
20. Elhanan Helpman (1987), ‘Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries’
PART IV
INTERNATIONAL FACTOR MOVEMENTS AND MULTINATIONAL CORPORATIONS
21. James R. Markusen (1983), ‘Factor Movements and Commodity Trade as Complements’
22. Richard E. Caves (1971), ‘International Corporations: The Industrial Economics of Foreign Investment’
23. Elhanan Helpmann and Paul R. Krugman (1985), ‘Single-Product Firms’
24. Alasdair Smith (1987), ‘Strategic Investment, Multinational Corporations and Trade Policy’
25. Ignatius J. Horstmann and James R. Markusen (1992), ‘Endogenous Market Structures in International Trade (Natura Facit Saltum)’
26. Paul Krugman (1991), ‘Increasing Returns and Economic Geography’
PART V
UNCERTAINTY
27. Elhanan Helpman and Assaf Razin (1978), ‘The Protective Effect of a Tariff under Uncertainty’
28. James E. Anderson (1981), ‘The Heckscher-Ohlin and Travis-Vanek Theorems Under Uncertainty’
29. David M. G. Newbery and Joseph E. Stiglitz (1984), ‘Pareto Inferior Trade’
30. Avinash Dixit (1987), ‘Trade and Insurance With Moral Hazard’
PART VI
REAL FOUNDATIONS OF INTERNATIONAL MACROECONOMICS
31. W. E. G. Salter (1959), ‘Internal and External Balance: The Role of Price and Expenditure Effects’
32. Rudiger Dornbusch (1974), ‘Tariffs and Nontraded Goods’
33. Peter Neary (1988), ‘Determinants of the Equilibrium Real Exchange Rate’
34. Lars E. O. SVENSSON AND ASSAF RAZIN (1983), ‘THE TERMS OF TRADE AND THE CURRENT ACCOUNT: THE HARBERGER-LAURSEN-METZLER EFFECT’
35. Sweder van Wijnbergen (1992), ‘Trade Reform, Policy Uncertainty and the Current Account: A Non-Expected-Utility Approach’
36. Paul Krugman (1987), ‘The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs. Thatcher: Notes on Trade in the Presence of Dynamic Scale Economies’
PART VII
TRADE, TECHNOLOGY AND GROWTH
37. Ronald Findlay (1980), ‘The Terms of Trade and Equilibrium Growth in the World Economy’
38. Robert C. Feenstra and Kenneth L. Judd (1982), ‘Tariffs, Technology Transfer, and Welfare’
39. Elhanan Helpman (1988), ‘Growth, Technological Progress, and Trade’
40. Gene M. Grossman and Elhanan Helpman (1990), ‘COMPARATIVE ADVANTAGE AND LONG-RUN GROWTH’
CONTENTS
ACKNOWLEDGEMENTS
INTRODUCTION
PART I
INTERNATIONAL EXCHANGE
1. Robert A. Mundell (1968), ‘The Classical System; Transfers, Productivity, and Taxes; and Generalization of the Classical Model’
2. Makoto Yano (1983), ‘Welfare Aspects of the Transfer Problem’
3. Avinash Dixit (1983), ‘The Multi-Country Transfer Problem’
4. Ronald W. Jones (1985), ‘Income Effects and Paradoxes in the Theory of International Trade’
5. Avinash Dixit (1984), ‘Growth and Terms of Trade under Imperfect Competition’
PART II
TRADE POLICY AND THE GAINS FROM TRADE
A. Trade Policy in Competitive General Equilibrium
6. Michihiro Ohyama (1972), ‘Trade and Welfare in General Equilibrium’
7. Avinash Dixit and Victor Norman (1986), ‘Gains from Trade Without Lump-Sum Compensation’
8. Ronald W. Jones (1969), ‘Tariffs and Trade in General Equilibrium: Comment’
9. Tatsuo Hatta (1977), ‘A Theory of Piecemeal Policy Recommendations’
10. Wilfred Ethier (1977), ‘The Theory of Effective Protection in General Equilibrium: Effective-Rate Analogues of Nominal Rates’
B. Trade and Industrial Policy in Oliogopoly
11. James A. Brander and Barbara J. Spencer (1985), ‘Export Subsidies and International Market Share Rivalry’
12. Jonathan Eaton and Gene M. Grossman (1986), ‘Optimal Trade and Industrial Policy Under Oligopoly’
13. Avinash K. Dixit and Gene M. Grossman (1986), ‘Targeted Export Promotion With Several Oligopolistic Industries’
14. James A. Brander and Barbara J. Spencer (1984), ‘Trade Warfare: Tariffs and Cartels’
15. Victor D. Norman (1989), ‘Trade Policy Under Imperfect Competition: Theoretical Ambiguities - Empirical Regularities?’
C. Trade Policy with Entry, Monopolistic Competition and Increasing Returns
16. Anthony J. Venables (1985), ‘Trade and Trade Policy With Imperfect Competition: The Case of Identical Products and Free Entry’
17. Ignatius J. Horstmann and James R. Markusen (1986), ‘Up the Average Cost Curve: Inefficient Entry and the New Protectionism’
18. Wilfred J. Ethier (1982), ‘Decreasing Costs in International Trade and Frank Graham’s Argument for Protection’
19. Richard Harris (1984), ‘Applied General Equilibrium Analysis of Small Open Economies With Scale Economies and Imperfect Competition’
PART III QUANTITATIVE TRADE RESTRICTIONS
20. Peter Neary (1988), ‘Tariffs, Quotas, and Voluntary Export Restraints With and Without Internationally Mobile Capital’
21. Rodney E. Falvey (1979), ‘The Composition of Trade within Import-restricted Product Categories’
22. Jagdish Bhagwati (1965), ‘On the Equivalence of Tariffs and Quotas’
23. Richard Harris (1985), ‘Why Voluntary Export Restraints are “Voluntary”’
PART IV THE POLITICAL ECONOMY OF TRADE POLICY
24. Anne O. Krueger (1974), ‘The Political Economy of the Rent-Seeking Society’
25. Jagdish N. Bhagwati and T. N. Srinivasan (1980), ‘Revenue Seeking: A Generalization of the Theory of Tariffs’
26. Ronald Findlay and Stanislaw Wellisz (1982), ‘Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare’
27. Wolfgang Mayer (1984), ‘Endogenous Tariff Formation’
28. Arye L. Hillman and Heinrich W. Ursprung (1988), ‘Domestic Politics, Foreign Interests, and International Trade Policy’
PART V DOMESTIC DISTORTIONS AND OPTIMAL POLICY
29. W. M. Corden (1975), ‘Tariffs, Subsidies and the Terms of Trade’
30. Michihiro Ohyama (1972), ‘Domestic Distortions and the Theory of Tariffs’
31. W. M. Corden and R. Findlay (1975), ‘Urban Unemployment, Intersectoral Capital Mobility and Development Policy’
32. Sudhir Anand and Vijay Joshi (1979), ‘Domestic Distortions, Income Distribution and the Theory of Optimum Subsidy’
33. Dani Rodrik (1987), ‘Policy Targeting with Endogenous Distortions: Theory of Optimum Subsidy Revisited’
VOLUME II
PART I
PRODUCTION STRUCTURE AND COMPARATIVE STATICS
1. Paul A. Samuelson (1953-54), ‘Prices of Factors and Goods in General Equilibrium’
2. Ronald W. Jones (1965), ‘The Structure of Simple General Equilibrium Models’
3. Ronald W. Jones(1971), ‘A Three-Factor Model in Theory, Trade, and History’
4. J. Peter Neary (1978), ‘Short-Run Capital Specificity and the Pure Theory of International Trade’
5. F. H. Gruen and W. M. Corden (1970), ‘A Tariff that Worsens the Terms of Trade’
6. Wilfred Ethier (1974), ‘Some of the Theorems of International Trade with Many Goods and Factors’
PART II
THEORIES OF INTERNATIONAL TRADE
A: TRADE BASED ON COMPARATIVE ADVANTAGE
7. R. Dornbusch, S. Fischer and P. A. Samuelson (1977), ‘Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods’
8. Alan V. Deardorff (1980), ‘The General Validity of the Law of Comparative Advantage’
9. Jaroslav Vanel (1968), ‘The Factor Proportions Theory: The N-Factor Case’
10. Wilfred J. Ethier (1982), ‘The General Role of Factor Intensity in the Theorems of International Trade’
B: TRADE BASED ON INCREASING RETURNS
11. James R. Melvin (1969), ‘Increasing Returns to Scale as a Determinant of Trade’
12. Wilfred Ethier (1979), ‘Internationally Decreasing Costs and World Trade’
13. Paul Krugman (1980), ‘Scale Economies, Product Differentiation, and the Pattern of Trade’
14. Colin Lawrence and Pablo T. Spiller (1983), ‘Product Diversity, Economies of Scale, and International Trade’
C: TRADE BASED ON OLIGOPOLISTIC COMPETITION
15. James A. Brander (1981), ‘Intra-Industry Trade in Identical Commodities’
16. Anthony J. Venables (190), ‘International Capacity Choice and National Market Games’
PART III
TESTS OF TRADE THEORIES
17. Edward E. Learner (1980), ‘The Leontief Paradox, Reconsidered’
18. Richard A. Brecher and Ehsan U. Choudhri (1982), ‘The Leontief Paradox, Continued’
19. Harry P. Bowen, Edward E. Learner and Leo Sveikauskas (1987), ‘Multicountry, Multifactor Tests of the Factor Abundance Theory’
20. Elhanan Helpman (1987), ‘Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries’
PART IV
INTERNATIONAL FACTOR MOVEMENTS AND MULTINATIONAL CORPORATIONS
21. James R. Markusen (1983), ‘Factor Movements and Commodity Trade as Complements’
22. Richard E. Caves (1971), ‘International Corporations: The Industrial Economics of Foreign Investment’
23. Elhanan Helpmann and Paul R. Krugman (1985), ‘Single-Product Firms’
24. Alasdair Smith (1987), ‘Strategic Investment, Multinational Corporations and Trade Policy’
25. Ignatius J. Horstmann and James R. Markusen (1992), ‘Endogenous Market Structures in International Trade (Natura Facit Saltum)’
26. Paul Krugman (1991), ‘Increasing Returns and Economic Geography’
PART V
UNCERTAINTY
27. Elhanan Helpman and Assaf Razin (1978), ‘The Protective Effect of a Tariff under Uncertainty’
28. James E. Anderson (1981), ‘The Heckscher-Ohlin and Travis-Vanek Theorems Under Uncertainty’
29. David M. G. Newbery and Joseph E. Stiglitz (1984), ‘Pareto Inferior Trade’
30. Avinash Dixit (1987), ‘Trade and Insurance With Moral Hazard’
PART VI
REAL FOUNDATIONS OF INTERNATIONAL MACROECONOMICS
31. W. E. G. Salter (1959), ‘Internal and External Balance: The Role of Price and Expenditure Effects’
32. Rudiger Dornbusch (1974), ‘Tariffs and Nontraded Goods’
33. Peter Neary (1988), ‘Determinants of the Equilibrium Real Exchange Rate’
34. Lars E. O. SVENSSON AND ASSAF RAZIN (1983), ‘THE TERMS OF TRADE AND THE CURRENT ACCOUNT: THE HARBERGER-LAURSEN-METZLER EFFECT’
35. Sweder van Wijnbergen (1992), ‘Trade Reform, Policy Uncertainty and the Current Account: A Non-Expected-Utility Approach’
36. Paul Krugman (1987), ‘The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs. Thatcher: Notes on Trade in the Presence of Dynamic Scale Economies’
PART VII
TRADE, TECHNOLOGY AND GROWTH
37. Ronald Findlay (1980), ‘The Terms of Trade and Equilibrium Growth in the World Economy’
38. Robert C. Feenstra and Kenneth L. Judd (1982), ‘Tariffs, Technology Transfer, and Welfare’
39. Elhanan Helpman (1988), ‘Growth, Technological Progress, and Trade’
40. Gene M. Grossman and Elhanan Helpman (1990), ‘COMPARATIVE ADVANTAGE AND LONG-RUN GROWTH’
