Rethinking Competitive Trade Models: A Corrupt Economy Perspective

This book presents competitive trade models to recast them from the perspective of an economy which is beset with corruption and related intermediation that requires some sort of cost. It innovatively transforms traditional models (HOSV, SFM, HO nugget) by treating intermediation as a distinct economic sector that consumes factors of production.

Through rigorous general equilibrium analysis, it also discusses real life events such as trade liberalization, capital inflow, labor immobility, ex...