Lectures on International Trade / Edition 2

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Overview

This textbook by two eminent theorists of international trade presents the most integrated and ambitious treatment of the subject available to date. It has evolved over several years of lectures to graduate students at major campuses such as MIT, Yale, and Columbia. While it is primarily addressed to graduate-level courses, it can also be easily adapted to upper-level undergraduate use, since the exposition starts from basic principles. Intuitive, geometric, and mathematical arguments are judiciously combined in a masterly treatment that makes this a unique and authoritative text in the field.

The book concerns pure rather than monetary theory, and its thirty-four chapters are organized into four parts. The first develops alternative models and theories explaining the trade pattern. The second is addressed to tariffs, quotas, and transfers. The third develops the theory of trade and welfare. The topics include gain from trade, theory of distortions and policy intervention, immiserizing growth, customs unions, DUP activities, international capital flows and migration. The final part treats other threshold topics such as trade and growth, two-ness and duality, cost-benefit analysis and uncertainty.

Jagdish N. Bhagwati is Arthur Lehman Professor of Economics and Director, International Economics Research Center, at Columbia University. Among his books are International Trade: Selected Readings (MIT Press, 1981) which complements and can be effectively used with this new text. T.N. Srinivasan is Samuel C. Park Jr. Professor of Economics at Yale University.

This edition not available in the U.S. and Canada.

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What People Are Saying

Gene Grossman
Gene Grossman, Jacob Viner Professor of International Economics, Princeton University

A comprehensive treatment of both positive and normative trade theory, this second edition includes new chapters on the specific-factors model, economies of scale, strategic trade policy, and endogenous growth. Graduate students will appreciate the lucid writing and the judicious mix of algebra and diagrams.

From the Publisher
"A comprehensive treatment of both positive and normative tradetheory, this second edition includes new chapters on thespecific-factors model, economies of scale, strategic trade policy,and endogenous growth. Graduate students will appreciate the lucidwriting and the judicious mix of algebra and diagrams." Gene Grossman , Jacob Viner Professor ofInternational Economics,Princeton University
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Product Details

  • ISBN-13: 9780262024433
  • Publisher: MIT Press
  • Publication date: 10/2/1998
  • Edition description: Subsequent
  • Edition number: 2
  • Pages: 614
  • Product dimensions: 7.48 (w) x 10.34 (h) x 1.64 (d)

Meet the Author

Jagdish Bhagwati is University Professor at Columbia University and External Advisor to theDirector General, World Trade Organization and Senior Fellow for International Economics with theCouncil on Foreign Relations. He was named Distinguished Fellow of the American Economic Association in 2003.

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Table of Contents

Preface to the Second Edition
1 Introduction 1
I Theories of International Trade 7
2 Model and Analytic Relationships in Recardian Theory 9
3 Ricardian Theory and the Pattern of Trade 29
4 Some Extensions of Ricardian Theory 35
5 Model and Analytic Relationships under the Heckscher-Ohlin Theory 53
6 Pattern of Trade and the Heckscher-Ohlin Theory 79
7 Specific-Factors Model 91
8 Generalizations and Empirical Verification of the Heckscher-Ohlin Theory 107
9 Dual Approach: Basic Tools 131
10 Mathematical Analysis of the 2 x 2 and 2 x 3 Models 143
11 Economies of Scale 163
II Trade Interventions and Transfers 201
12 Tariffs and Trade Equilibrium 203
13 Tariffs versus Quotas 221
14 Other Commercial Policy Instruments 229
15 Effective Rate of Protection 239
16 Transfer Problem 247
III Trade and Welfare in an Open Economy 255
17 Principal Issues and Policy Instruments 257
18 Gains from Trade 265
19 Measuring Gains from Trade 281
20 Distortions: Departures from Free-Trade Optimality 285
21 Monopoly Power in Trade 289
22 Production Externalities 301
23 Monopoly in Production 309
24 Monopsony 313
25 Wage Differentials 323
26 Generalized Sticky Wages 331
27 Sector-Specific Sticky Wages 343
28 Noneconomic Objectives 351
29 Immiserizing Growth 369
30 Imperfect Competition and Trade Policy 381
31 Uniform versus Preferential Tariff Reduction 421
32 International Capital Flows 455
33 International Migration 467
IV Recent Theoretical Developments 473
34 Directly Unproductive Profit-Seeking (DUP) Activities 475
35 Trade Reform 497
36 Growth and Welfare 517
37 Endogenous Growth, Innovation, and Trade 527
38 Shadow Prices for Project Selection in Open Economies 541
39 Uncertainty 549
App. A Alternative Elasticity Formulas 565
App. B Basic Results of the 2 x 2 Neoclassical Model of Trade Theory 569
App. C Classical Comparative-Statics Model and Analytical Relationships 583
Index 595
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