Lectures on International Trade

The greatest strength of this thoroughly revised and expanded edition of Lectures on International Trade is 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).

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.