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Lectures on International Trade
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Part 1 Theories of international trade: model and analytic relationships in Ricardian theory; Ricardian theory and the pattern of trade; some extensions of Ricardian theory; model and analytic relationships under the Heckscher-Ohlin theory; pattern of trade and the Heckscher-Ohlin theory; specific-factors model; generalizations and empirical verification of the Heckscher-Ohlin theory; dual approach - basic tools; mathematical analysis of the 2x2 and 2x3 models; economies of scale. Part 3 Trade interventions and transfers: tariffs and trade equilibrium; tariffs versus quotas; other commercial policy instruments; effective rate of protection; transfer problem. Part 3 Trade and welfare in an open economy: principal issues and policy instruments; gains from trade; measuring gains from trade; distortions - departures from free-trade optimality; monopoly power in trade; production externalities; monopoly in production; monopsony; wage differentials; generalized sticky wages; sector-specific sticky wages; noneconomic objectives; immiserizing growth; imperfect competition and trade policy; uniform versus preferential tariff reduction; international capital flows; international migration; asymmetries. Part 4 recent theoretical developments: directly unproductive profit-seeking (DUP) activities; trade reform; growth and welfare; endogenous growth, innovation, and trade; shadow prices for project selection in open economies; uncertainty. Appendices: alternative elasticity formulas; basic results of the 2x2 neoclassical model of trade theory; classical comparative-statics model and analytical relationships.

Promotional Information

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 of International Economics, Princeton University

About the Author

Jagdish N. Bhagwati is University Professor of Economics, Law, and International Relations at Columbia University and former Adviser to the Director General of GATT, Arthur Dunkel. He is the author (with Arvind Panagariya) of Why Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries. Arvind Panagariya is Vice Chairman, NITI Aayog (National Institution for Transforming India), Government of India, and Professor of Economics in the School of International and Public Affairs at Columbia University. T.N. Srinivasan is Samuel C. Park Jr. Professor of Economics at Yale University.

Reviews

"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 of International Economics,Princeton University

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