This text collects the most important contributions to the
theory of international trade in recent decades, including the many
new approaches developed during the 1980s. Of the 28 chapters in
major sections covering general equilibrium, trade pattern
theories, imperfect competition and market structure, quotas and
VERs, theory of distortions, direct unproductive profit-seeking and
rent-seeking activities, customs unions, growth and transfers, and
foreign investment, 16 are new to this edition.These new pieces
focus on such currently active areas as the treatment of market
structure, explored chiefly by economists Avinash Dixit, Jonathan
Eaton and Gene M. Grossman, Paul R. Krugman, Elhanan Helpman, James
Brander and Barbara Spencer, and imperfect competition and the
theory of political economy, with key contributions by Anne 0.
Krueger, Jagdish Bhagwati, Ronald Findlay, T. N. Srinivasan,
Richard Brecher, Wolfgang Mayer, and several other younger trade
theorists.Other new selections take up developments within more
traditional topics, such as the classic problem of the effects of
transfers, the equivalence of tariffs and quotas, revived in the
context of the effect of VERs, and the theory of multinational
investments which has been affected by both the new theories of
market structure and of political economy.Jagdish N. Bhagwati is
Arthur Lehman Professor of Economics and Director of the
International Economics Research Center at Columbia University.
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