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Summary:
Publisher Summary 1
The greatest strength of this thoroughly revised and expanded edition of Lectures on International Tradeis its rigorous algebraic and geometric treatment of the various models and results of trade theory. The authors, who now include Arvind Panagariya, offer both policy insights and empirical applications. They have added nine entirely new chapters as well as new sections to several existing chapters (e.g., a greatly expanded treatment of the growing theory of preferential trade agreements). The new chapters are on:
- the specific-factors model
- the "higher-dimensional" trade theory and empirical verification of the Heckscher-Ohlin-Vanek theory
- duality in trade theory
- algebra of the Heckscher-Ohlin and specific-factors models
- the theories of international trade in the presence of scale economies
- nontariff instruments of trade policy, chiefly AD, VERs, and VIEs
- trade policy under oligopoly and monopolistic competition
- trade policy reform
- application of the new literature on endogenous growth to trade theory and policy
目录
Table Of Contents:
Preface to the Second Edition xi
1 Introduction 1(6)
1.1 Pure Theory of Trade 1(1)
1.2 Distinguishing Features of International Trade Theory 1(1)
1.3 Positive and Normative Aspects 2(1)
1.4 Organization of the Volume 3(1)
1.5 Standardized Notation 3(4)
I THEORIES OF INTERNATIONAL TRADE 7(194)
2 Model and Analytic Relationships in Ricardian Theory 9(20)
2.1 Ricardian Model 9(1)
2.2 Supply Relations 9(5)
2.3 Self-Sufficiency Equilibrium 14(1)
2.4 Trade Equilibrium and Offer Curves 15(5)
2.5 Trade-Indifference Curves 20(5)
2.6 Formal Notes on the Ricardian Model 25(4)
3 Ricardian Theory and the Pattern of Trade 29(6)
3.1 Alternative Demand Assumptions 32(2)
3.2 Weaker Formulation of Ricardian Theorem 34(1)
4 Some Extensions of Ricardian Theory 35(18)
4.1 Multiple Countries 35(5)
4.2 Multiple Goods 40(2)
4.3 Transportation Costs 42(2)
4.4 Tariffs 44(2)
4.5 Nontraded Goods 46(1)
4.6 Continuum-of-Goods Model 47(6)
5 Model and Analytic Relationships under the Heckscher-Ohlin Theory 53(26)
5.1 Heckscher-Ohlin Model 53(1)
5.2 Supply Relations 54(4)
5.3 Competitive System 58(14)
5.4 Depiction of Free-Trade Equilibrium 72(7)
6 Pattern of Trade and the Heckscher-Ohlin Theory 79(12)
6.1 Heckscher-Ohlin Theorem with Physical Definition of Factor Abundance 79(3)
6.2 Heckscher-Ohlin Theorem with Price Definition of Factor Abundance 82(2)
6.3 Factor-Price Equalization 84(7)
7 Specific-Factors Model 91(16)
7.1 Specific-Factors Model: Basic Analysis 92(2)
7.2 Comparative Statics: A Change in Goods Prices 94(2)
7.3 Comparative Statics: A Change in Factor Endowments 96(2)
7.4 Interpreting the SF Model as the Short-Run Version of the 2 x 2 Model 98(3)
7.5 Source of Factor Specificity and the Choice of a Model 101(6)
8 Generalizations and Empirical Verification of the Heckscher-Ohlin Theory 107(24)
8.1 Many Goods, Two Factors 108(6)
8.2 Two Goods, Many Factors 114(1)
8.3 Many Goods and Many Factors 114(6)
8.4 Empirical Verification of the Heckscher-Ohlin Theory 120(11)
9 Dual Approach: Basic Tools 131(12)
9.1 Envelope Theorem and Envelope Function 131(2)
9.2 Unit-Cost Function 133(3)
9.3 Revenue Function 136(1)
9.4 Expenditure Function 137(1)
9.5 Equilibrium 138(2)
9.6 Trade Elasticities and Stability in a Two-Good Model 140(3)
10 Mathematical Analysis of the 2 x 2 and 2 x 3 Models 143(20)
10.1 The 2 x 2 Model 143(11)
10.2 The 2 x 3 Specific-Factors Model 154(4)
10.3 Dynamic Adjustment with Adjustment Costs 158(5)
11 Economies of Scale 163(38)
11.1 Models of Perfect Competition 163(15)
11.2 Models of Monopolistic Competition 178(23)
II TRADE INTERVENTIONS AND TRANSFERS 201(54)
12 Tariffs and Trade Equilibrium 203(18)
12.1 Free-Trade Version of the Classical Model 203(1)
12.2 Effect of a Tariff on External and Domestic Terms of Trade 204(2)
12.3 Geometry of Tariffs 206(6)
12.4 Metzler Paradox 212(2)
12.5 Some Extensions: Metzler Production Paradox 214(1)
12.6 Lerner Symmetry Theorem 215(6)
13 Tariffs versus Quotas 221(8)
13.1 Equivalence Argument 221(2)
13.2 Breakdown of Equivalence 223(2)
13.3 An Alternative Question 225(1)
13.4 Applications of Analysis to Other Forms of Tariffs and Quotas 226(3)
14 Other Commercial Policy Instruments 229(10)
14.1 Voluntary Export Restraints 229(4)
14.2 Voluntary Import Expansions 233(2)
14.3 Antidumping Actions 235(4)
15 Effective Rate of Protection 239(8)
15.1 Two Definitions 240(2)
15.2 Predictive Power of ERP Indexes 242(5)
16 Transfer Problem 247(8)
16.1 Direct Solution 247(1)
16.2 Two-Stage Derivation 248(2)
16.3 Welfare Impact 250(1)
16.4 Immiserizing Transfers: Other Models 251(1)
16.5 Transfer Criteria in Other Models 252(3)
III TRADE AND WELFARE IN AN OPEN ECONOMY 255(218)
17 Principal Issues and Policy Instruments 257(8)
17.1 Major Concepts and Distinctions 257(1)
17.2 Alternative Policy Instruments and Hierarchy of Policies 258(7)
18 Gains from Trade 265(16)
18.1 Basic Theorem without Prices 265(3)
18.2 Basic Theorem with Prices 268(3)
18.3 Optimality of Free-Trade Policy for a Small Country 271(2)
18.4 Optimality of Free Trade from World Viewpoint 273(1)
18.5 Superiority of Trade over Autarky, without Lump-Sum Transfers 274(2)
18.6 Illustrating the Dixit-Norman Argument 276(5)
19 Measuring Gains from Trade 281(4)
19.1 Gains from Free Trade 281(1)
19.2 Decomposing Gains from Trade 281(1)
19.3 Factor Immobility 282(2)
19.4 Other Considerations 284(1)
20 Distortions: Departures from Free-Trade Optimality 285(4)
21 Monopoly Power in Trade 289(12)
21.1 Optimal Policy Intervention 289(1)
21.2 Tariff Level 289(3)
21.3 Can the Optimal Tariff Be Negative? 292(1)
21.4 Optimal Tariff Structure with Several Traded Goods 293(1)
21.5 Retaliation or Extortion 293(3)
21.6 Ranking Alternative Policies 296(5)
22 Production Externalities 301(8)
23 Monopoly in Production 309(4)
23.1 Nontangency 309(1)
23.2 Welfare Analysis 309(1)
23.3 Gains from Trade 309(4)
24 Monopsony 313(10)
24.1 Positive Analysis of Monopsony Distortion 313(6)
24.2 Welfare Implications 319(4)
25 Wage Differentials 323(8)
25.1 Nature of the Distortion 323(1)
25.2 Analysis 324(7)
26 Generalized Sticky Wages 331(12)
26.1 One-Good Model with Sticky Wage 331(1)
26.2 Two-Good Model with Factor Immobility 331(2)
26.3 Generalized Sticky Wage with Full Factor Mobility in 2 x 2 Model 333(10)
27 Sector-Specific Sticky Wages 343(8)
27.1 Harris-Todaro Model 343(2)
27.2 Policy Implications 345(3)
27.3 Other Extensions 348(3)
28 Noneconomic Objectives 351(18)
28.1 Different Objectives 351(8)
28.2 Formal Mathematics of the Problem 359(5)
28.3 Turning Noneconomic Objectives into Economic Objectives 364(5)
29 Immiserizing Growth 369(12)
29.1 Original Case 369(1)
29.2 Immiserizing Growth for a Small Country with a Tariff 370(1)
29.3 Generalized Theory 371(2)
29.4 Two Caveats 373(1)
29.5 Diverse Applications of Immiserizing-Growth Theory 373(2)
29.6 Algebra of the Bhagwati and the Johnson Cases 375(6)
30 Imperfect Competition and Trade Policy 381(40)
30.1 Oligopoly: Competition in the Third-Country Market 381(20)
30.2 Oligopoly in Two-Country Models 401(15)
30.3 Monopolitic Competition 416(5)
31 Uniform versus Preferential Tariff Reduction 421(34)
31.1 Uniform Reduction 421(6)
31.2 Preferential Reduction 427(12)
31.3 Recent Static Analyses 439(5)
31.4 Recent "Dynamic Time-Path" Analyses 444(11)
32 International Capital Flows 455(12)
32.1 Goods-Price Equalization: Turning Factor-Price Equalization on its Head 455(1)
32.2 Diversification with Different Technologies 456(1)
32.3 Welfare Analysis: Inflows without Optimal Policy Intervention 457(5)
32.4 Welfare Analysis: Optimal and Second-Best Interventions 462(1)
32.5 Other Welfare-Theoretic Questions 463(4)
33 International Migration 467(6)
33.1 Asymmetries 467(2)
33.2 Choice between International Labor and Capital Mobility 469(1)
33.3 Response to Import Competition 470(3)
IV RECENT THEORETICAL DEVELOPMENTS 473(90)
34 Directly Unproductive Profit-Seeking (DUP) Activities 475(22)
34.1 Tariff Evasion 476(5)
34.2 Revenue Seeking 481(4)
34.3 Tariff Seeking 485(1)
34.4 General Theory of DUP Activities 486(6)
34.5 Price versus Quantity Distortions 492(5)
35 Trade Reform 497(20)
35.1 Normative Analysis 497(16)
35.2 Positive Analysis 513(4)
36 Growth and Welfare 517(10)
36.1 Distortionary Situations 517(2)
36.2 Optimal Policies Everywhere: Absence of Deadweight Loss under Free Trade 519(1)
36.3 Steady States, Trade, and Welfare 520(7)
37 Endogenous Growth, Innovation, and Trade 527(14)
37.1 Endogenous Growth and Trade 528(5)
37.2 Innovation-Based Growth and Technology Diffusion among Countries 533(8)
38 Shadow Prices for Project Selection in Open Economies 541(8)
38.1 "World-Price"--Valuation Rule 541(2)
38.2 Derivation of World-Price-Valuation Shadow Prices with Given Distortion 543(2)
38.3 Negative Shadow Prices 545(1)
38.4 Other Issues and Extensions 546(3)
39 Uncertainty 549(14)
39.1 Ricardian Model for Complete Set of Markets 551(1)
39.2 Ricardian Model for Securities and Spot Markets 552(2)
39.3 Ricardian Model for Equivalence of World Market with Securities Market and with Complete Set of Markets 554(2)
39.4 Models with an Incomplete Set of Markets 556(7)
Appendixes 563(32)
A Alternative Elasticity Formulas 565(4)
B Basic Results of the 2 x 2 Neoclassical Model of Trade Theory 569(14)
C Classical Comparative-Statics Model and Analytical Relationships 583(12)
Index 595
Preface to the Second Edition xi
1 Introduction 1(6)
1.1 Pure Theory of Trade 1(1)
1.2 Distinguishing Features of International Trade Theory 1(1)
1.3 Positive and Normative Aspects 2(1)
1.4 Organization of the Volume 3(1)
1.5 Standardized Notation 3(4)
I THEORIES OF INTERNATIONAL TRADE 7(194)
2 Model and Analytic Relationships in Ricardian Theory 9(20)
2.1 Ricardian Model 9(1)
2.2 Supply Relations 9(5)
2.3 Self-Sufficiency Equilibrium 14(1)
2.4 Trade Equilibrium and Offer Curves 15(5)
2.5 Trade-Indifference Curves 20(5)
2.6 Formal Notes on the Ricardian Model 25(4)
3 Ricardian Theory and the Pattern of Trade 29(6)
3.1 Alternative Demand Assumptions 32(2)
3.2 Weaker Formulation of Ricardian Theorem 34(1)
4 Some Extensions of Ricardian Theory 35(18)
4.1 Multiple Countries 35(5)
4.2 Multiple Goods 40(2)
4.3 Transportation Costs 42(2)
4.4 Tariffs 44(2)
4.5 Nontraded Goods 46(1)
4.6 Continuum-of-Goods Model 47(6)
5 Model and Analytic Relationships under the Heckscher-Ohlin Theory 53(26)
5.1 Heckscher-Ohlin Model 53(1)
5.2 Supply Relations 54(4)
5.3 Competitive System 58(14)
5.4 Depiction of Free-Trade Equilibrium 72(7)
6 Pattern of Trade and the Heckscher-Ohlin Theory 79(12)
6.1 Heckscher-Ohlin Theorem with Physical Definition of Factor Abundance 79(3)
6.2 Heckscher-Ohlin Theorem with Price Definition of Factor Abundance 82(2)
6.3 Factor-Price Equalization 84(7)
7 Specific-Factors Model 91(16)
7.1 Specific-Factors Model: Basic Analysis 92(2)
7.2 Comparative Statics: A Change in Goods Prices 94(2)
7.3 Comparative Statics: A Change in Factor Endowments 96(2)
7.4 Interpreting the SF Model as the Short-Run Version of the 2 x 2 Model 98(3)
7.5 Source of Factor Specificity and the Choice of a Model 101(6)
8 Generalizations and Empirical Verification of the Heckscher-Ohlin Theory 107(24)
8.1 Many Goods, Two Factors 108(6)
8.2 Two Goods, Many Factors 114(1)
8.3 Many Goods and Many Factors 114(6)
8.4 Empirical Verification of the Heckscher-Ohlin Theory 120(11)
9 Dual Approach: Basic Tools 131(12)
9.1 Envelope Theorem and Envelope Function 131(2)
9.2 Unit-Cost Function 133(3)
9.3 Revenue Function 136(1)
9.4 Expenditure Function 137(1)
9.5 Equilibrium 138(2)
9.6 Trade Elasticities and Stability in a Two-Good Model 140(3)
10 Mathematical Analysis of the 2 x 2 and 2 x 3 Models 143(20)
10.1 The 2 x 2 Model 143(11)
10.2 The 2 x 3 Specific-Factors Model 154(4)
10.3 Dynamic Adjustment with Adjustment Costs 158(5)
11 Economies of Scale 163(38)
11.1 Models of Perfect Competition 163(15)
11.2 Models of Monopolistic Competition 178(23)
II TRADE INTERVENTIONS AND TRANSFERS 201(54)
12 Tariffs and Trade Equilibrium 203(18)
12.1 Free-Trade Version of the Classical Model 203(1)
12.2 Effect of a Tariff on External and Domestic Terms of Trade 204(2)
12.3 Geometry of Tariffs 206(6)
12.4 Metzler Paradox 212(2)
12.5 Some Extensions: Metzler Production Paradox 214(1)
12.6 Lerner Symmetry Theorem 215(6)
13 Tariffs versus Quotas 221(8)
13.1 Equivalence Argument 221(2)
13.2 Breakdown of Equivalence 223(2)
13.3 An Alternative Question 225(1)
13.4 Applications of Analysis to Other Forms of Tariffs and Quotas 226(3)
14 Other Commercial Policy Instruments 229(10)
14.1 Voluntary Export Restraints 229(4)
14.2 Voluntary Import Expansions 233(2)
14.3 Antidumping Actions 235(4)
15 Effective Rate of Protection 239(8)
15.1 Two Definitions 240(2)
15.2 Predictive Power of ERP Indexes 242(5)
16 Transfer Problem 247(8)
16.1 Direct Solution 247(1)
16.2 Two-Stage Derivation 248(2)
16.3 Welfare Impact 250(1)
16.4 Immiserizing Transfers: Other Models 251(1)
16.5 Transfer Criteria in Other Models 252(3)
III TRADE AND WELFARE IN AN OPEN ECONOMY 255(218)
17 Principal Issues and Policy Instruments 257(8)
17.1 Major Concepts and Distinctions 257(1)
17.2 Alternative Policy Instruments and Hierarchy of Policies 258(7)
18 Gains from Trade 265(16)
18.1 Basic Theorem without Prices 265(3)
18.2 Basic Theorem with Prices 268(3)
18.3 Optimality of Free-Trade Policy for a Small Country 271(2)
18.4 Optimality of Free Trade from World Viewpoint 273(1)
18.5 Superiority of Trade over Autarky, without Lump-Sum Transfers 274(2)
18.6 Illustrating the Dixit-Norman Argument 276(5)
19 Measuring Gains from Trade 281(4)
19.1 Gains from Free Trade 281(1)
19.2 Decomposing Gains from Trade 281(1)
19.3 Factor Immobility 282(2)
19.4 Other Considerations 284(1)
20 Distortions: Departures from Free-Trade Optimality 285(4)
21 Monopoly Power in Trade 289(12)
21.1 Optimal Policy Intervention 289(1)
21.2 Tariff Level 289(3)
21.3 Can the Optimal Tariff Be Negative? 292(1)
21.4 Optimal Tariff Structure with Several Traded Goods 293(1)
21.5 Retaliation or Extortion 293(3)
21.6 Ranking Alternative Policies 296(5)
22 Production Externalities 301(8)
23 Monopoly in Production 309(4)
23.1 Nontangency 309(1)
23.2 Welfare Analysis 309(1)
23.3 Gains from Trade 309(4)
24 Monopsony 313(10)
24.1 Positive Analysis of Monopsony Distortion 313(6)
24.2 Welfare Implications 319(4)
25 Wage Differentials 323(8)
25.1 Nature of the Distortion 323(1)
25.2 Analysis 324(7)
26 Generalized Sticky Wages 331(12)
26.1 One-Good Model with Sticky Wage 331(1)
26.2 Two-Good Model with Factor Immobility 331(2)
26.3 Generalized Sticky Wage with Full Factor Mobility in 2 x 2 Model 333(10)
27 Sector-Specific Sticky Wages 343(8)
27.1 Harris-Todaro Model 343(2)
27.2 Policy Implications 345(3)
27.3 Other Extensions 348(3)
28 Noneconomic Objectives 351(18)
28.1 Different Objectives 351(8)
28.2 Formal Mathematics of the Problem 359(5)
28.3 Turning Noneconomic Objectives into Economic Objectives 364(5)
29 Immiserizing Growth 369(12)
29.1 Original Case 369(1)
29.2 Immiserizing Growth for a Small Country with a Tariff 370(1)
29.3 Generalized Theory 371(2)
29.4 Two Caveats 373(1)
29.5 Diverse Applications of Immiserizing-Growth Theory 373(2)
29.6 Algebra of the Bhagwati and the Johnson Cases 375(6)
30 Imperfect Competition and Trade Policy 381(40)
30.1 Oligopoly: Competition in the Third-Country Market 381(20)
30.2 Oligopoly in Two-Country Models 401(15)
30.3 Monopolitic Competition 416(5)
31 Uniform versus Preferential Tariff Reduction 421(34)
31.1 Uniform Reduction 421(6)
31.2 Preferential Reduction 427(12)
31.3 Recent Static Analyses 439(5)
31.4 Recent "Dynamic Time-Path" Analyses 444(11)
32 International Capital Flows 455(12)
32.1 Goods-Price Equalization: Turning Factor-Price Equalization on its Head 455(1)
32.2 Diversification with Different Technologies 456(1)
32.3 Welfare Analysis: Inflows without Optimal Policy Intervention 457(5)
32.4 Welfare Analysis: Optimal and Second-Best Interventions 462(1)
32.5 Other Welfare-Theoretic Questions 463(4)
33 International Migration 467(6)
33.1 Asymmetries 467(2)
33.2 Choice between International Labor and Capital Mobility 469(1)
33.3 Response to Import Competition 470(3)
IV RECENT THEORETICAL DEVELOPMENTS 473(90)
34 Directly Unproductive Profit-Seeking (DUP) Activities 475(22)
34.1 Tariff Evasion 476(5)
34.2 Revenue Seeking 481(4)
34.3 Tariff Seeking 485(1)
34.4 General Theory of DUP Activities 486(6)
34.5 Price versus Quantity Distortions 492(5)
35 Trade Reform 497(20)
35.1 Normative Analysis 497(16)
35.2 Positive Analysis 513(4)
36 Growth and Welfare 517(10)
36.1 Distortionary Situations 517(2)
36.2 Optimal Policies Everywhere: Absence of Deadweight Loss under Free Trade 519(1)
36.3 Steady States, Trade, and Welfare 520(7)
37 Endogenous Growth, Innovation, and Trade 527(14)
37.1 Endogenous Growth and Trade 528(5)
37.2 Innovation-Based Growth and Technology Diffusion among Countries 533(8)
38 Shadow Prices for Project Selection in Open Economies 541(8)
38.1 "World-Price"--Valuation Rule 541(2)
38.2 Derivation of World-Price-Valuation Shadow Prices with Given Distortion 543(2)
38.3 Negative Shadow Prices 545(1)
38.4 Other Issues and Extensions 546(3)
39 Uncertainty 549(14)
39.1 Ricardian Model for Complete Set of Markets 551(1)
39.2 Ricardian Model for Securities and Spot Markets 552(2)
39.3 Ricardian Model for Equivalence of World Market with Securities Market and with Complete Set of Markets 554(2)
39.4 Models with an Incomplete Set of Markets 556(7)
Appendixes 563(32)
A Alternative Elasticity Formulas 565(4)
B Basic Results of the 2 x 2 Neoclassical Model of Trade Theory 569(14)
C Classical Comparative-Statics Model and Analytical Relationships 583(12)
Index 595
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