Theory of International Trade

Cover......Page 1
Contents......Page 6
List of Figures......Page 9
Preface......Page 10
List of Symbols......Page 15
List of Abbreviations......Page 17
1 Introduction......Page 18
PART I: THE MAINSTREAM INTERNATIONAL TRADE THEORY......Page 22
2 The Evolution of International Trade Theory......Page 24
3.1 Preliminaries......Page 27
3.2 The Heckscher–Ohlin Theorem......Page 29
3.3 The Factor–Price Equalization Theorem......Page 32
3.4 The Stolper–Samuelson Theorem......Page 38
3.5 The Rybczynski Theorem......Page 39
4.1 The validity of underlying assumptions......Page 41
4.2 The validity of neoclassical economic theory......Page 44
4.3 Empirical evidence......Page 45
4.4 The Evaluation of the Heckscher–Ohlin theory......Page 46
1 Empirical evidence......Page 49
2 Leamer\'s attempt at reconciliation of the theory with facts......Page 50
PART II: THE SYSTEMIC THEORY OF VALUE......Page 54
5 Diachronic vs Synchronic Labour Input: The Two-Century Old Misunderstanding......Page 56
6 The Employment Effect......Page 59
7 The Replacement Effect......Page 62
8 The Interplay of Employment and Replacement Effects......Page 67
9 The Traverse......Page 71
PART III: THE BASIC THREE-INDUSTRY MODEL......Page 74
10.1 Integrated world economy......Page 76
10.2 Open economy......Page 79
10.3 Growing economy......Page 80
11 The Wage–Rental Curve......Page 84
1 A note on price movements......Page 87
PART IV: AN ALTERNATIVE THEORY......Page 90
12.1 The two received models......Page 92
12.2 An alternative model of international trade......Page 94
12.3 Comparative advantage......Page 96
13 Intra-Industry Trade......Page 99
14.1 Comparative advantage hypothesis......Page 102
14.2 Equalization of factor prices hypothesis......Page 106
14.3 Hypothesis about the changes due to the opening of trade......Page 107
14.4 Increased factor supply specific effect......Page 109
PART V: THE GAINS FROM TRADE......Page 110
15.1 Given autarkic prices......Page 112
15.2 Primary and secondary specializations......Page 116
16.1 Autarky vs. trade......Page 121
16.2 Domestic and international prices......Page 123
16.3 Import and export gains......Page 125
16.4 Wage–rental curve again......Page 128
17.1 Marxian values......Page 133
17.2 Unequal exchange I......Page 135
17.3 Unequal exchange II......Page 137
PART VI: TARIFFS......Page 140
18.1 Effects of a tariff in a single market......Page 142
18.3 The pattern of specialization with tariff......Page 144
18.4 Nominal and effective tariffs......Page 146
18.5 Subsidies......Page 149
18.6 Infant industry support......Page 150
19.1 Degrees of economic integration......Page 153
19.2 Trade creation and trade diversion......Page 154
19.3 Customs unions in a more realistic setting......Page 157
19.4 Dynamic effects......Page 161
1 Empirical evidence......Page 167
2 Economic integration of Eastern Europe: The Project Bridge......Page 172
Notes......Page 207
References......Page 209
M......Page 214
Y......Page 215
E......Page 216
L......Page 217
S......Page 218
Y......Page 219