The Gains from Trade and the Gains from Aid PDF Download

Author: Murray C. Kemp
Publisher: Routledge
ISBN: 1134792026
Category : Business & Economics
Languages : en
Pages : 417

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Book Description
This book focuses on the normative side of trade theory and is divided into five parts: * trade under perfect competition; * restricted trade under perfect competition; * trade under imperfect competition and other distortions; * Compensation: lumpsum, non-lumpsum or neither? * International trade

Author: Minho Kim
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 107

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Book Description
In each of the three essays, I investigate gains from trade originating at three sources: i) vertical specialization through intermediate goods trade, ii) improving allocation of resources across heterogeneous firms, and iii) developing countries' technological advancement towards particular factors of production, either skilled labor or unskilled labor. I develop three models of trade, featuring multi-stage production, micro-distortions with endogenous entry and exit, and directed technical change. First, I show quantitatively that trade barriers play an important role in hindering the integration of poor countries in global market through trade in intermediate goods. Second, I find that the substantial impact of trade is to improve allocation on the extensive margin by forcing out less productive firms and replacing those with more productive firms. Third, I prove that gains from trade are magnified due to endogenously directed technical change. In the first chapter, I investigate whether the gains from trade are systematically related to the level of development. This chapter argues that we need to consider a multi-stage production process to answer the questions. I develop a Ricardian trade model which features two stages of production. At each stage, gains from trade can be measured by the home trade share, a measure of market integration. Looking at each stage's home trade shares across countries, I find different specialization patterns: rich countries are integrated at each stage whereas most poor countries are not integrated. Measured gains from trade are more than ten times larger for the 10 richest countries than for the 10 poorest countries. For the rich countries, two-thirds of the gains are accounted for by second stage trade. Poor countries' small gains from trade are accounted entirely by first stage trade. I argue that difference in trade barriers between rich countries and poor countries, particularly in the second stage of production, limit trade gains for poor countries. Second chapter studies the impact of international trade on sectoral total factor productivity (TFP). Misallocation of resources across heterogeneous firms impacts negatively on TFP. In this chapter, I study trade liberalization as a source of reducing misallocation across firms, thus leading to higher TFP. Misallocation is reduced on the extensive margin by forcing out less productive firms and replacing those with more productive firms. Using firm-level panel data on Chinese manufacturing, I measure distortions across firms and over time as in Hsieh and Klenow (2009). I find that the allocation of factors improves more in industries that experience a higher reduction in tariff rates. Less productive firms are more likely to exit in sectors that experience a higher tariff reduction. In addition, entrants in more liberalized sectors are more productive relative to entrants in less liberalized sectors. Reducing misallocation on the extensive margin has quantitatively large effect on TFP. In the third chapter, I analyze how technical change is directed towards particular factors of production in international trade between the North and the South. Typical assumption in the literature is that either technologies are exogenously given or technical change is allowed only in the North. I present a model of international trade with endogenous growth by allowing the South to direct their technology. This chapter studies the implications of the technical change for the gains from trade and the skill premium. Main result shows that more R & D is directed towards skill-augmenting technology in the North than in the South in sectors with the same skill-intensity. Technical change induced by lowering trade costs can increase the skill premium in both the North and the South. Gains from trade are magnified due to endogenous directed technical change. This results in larger gains from trade compared with the model where technical change is either not allowed or allowed only in the North.

Author: Cuong Le Van
Publisher: Springer Nature
ISBN: 9811905150
Category : Business & Economics
Languages : en
Pages : 238

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Book Description
This volume spotlights some of the most important economic issues confronting today's emerging developing countries. The topics studied in the book include the importance of productivity to economic growth, international trade and its relationship to productivity; immigration and brain drain; pollution havens, climate change, and the carbon tax; the effectiveness of foreign aid, the efficiency of education, and governance. Written by some of the most respected scholars in their respective fields, the individual chapters apply both economic theory and the most current empirical tools in rigorous but accessible exposition. Researchers can find value in the modeling and empirical techniques that can be applied to other countries and datasets. Policy makers can benefit from the intellectual foundation on which decisions on important issues can be based; and students of international trade, economic development, and environmental economics can gain knowledge of different country settings that give context to their fields of study.

Author: Karl-Josef Koch
Publisher: Springer Science & Business Media
ISBN: 3662004232
Category : Business & Economics
Languages : en
Pages : 398

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Book Description
Part 1 of this volume focusses on globalization. Gains from trade, international competitiveness, labour market issues in open economies, customs unions, dumping and intra-firm trade are the topics of this part. Part 2 puts a stronger emphasis on dynamic economics. Social income, intergenerational transfers, public pension systems, and bequest and gift motives in overlapping generation models are main topics. Economic policies are analyzed in Part 3, including the relation between wage rigidity and migration, several aspects of German financial and monetary policy, as well as tax competition. The volume concludes with institutional issues of globalization, a western view on eastern transition, social cost of rent seeking, and the evolution of social institutions.

Author: Arthur Irving Bloomfield
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 296

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Book Description
Consisting of 8 essays written between 1938 and 1992, this volume brings together in one place the significant contributions which Arthur 1. Bloomfield - a leading specialist in the field of international economics and especially international finance - has made to the history of international trade theory.

Author: John Berdell
Publisher: Edward Elgar Publishing
ISBN: 9781843765615
Category : Business & Economics
Languages : en
Pages : 208

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Book Description
"This work will be of great interest to both historians of economic ideas and economists concerned with modelling the interactions between growth and international trade."--BOOK JACKET.

Author: Zhimin Li
Publisher:
ISBN:
Category :
Languages : en
Pages : 116

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Book Description
This dissertation consists of three chapters regarding international trade and economic development. In the first two chapters I explore how China’s economic rise to the global stage affects resource allocations inside and outside the country, and in the third chapter I present a new method to infer risk sharing regimes pertinent to studying consumption behavior in developing countries. The first chapter studies how the "China shock"--the remarkable growth in China's productivity and trade activities since its accession to the World Trade Organization (WTO)--affects China's labor market and real exchange rate dynamics. I apply a dynamic trade and spatial equilibrium model to jointly explain two distinctive features of China's economic growth: the structural transformation, as characterized by the reallocation of labor from agriculture to manufacturing and services, and the sluggish appreciation of the real exchange rate, a puzzle from the perspective of a standard international economics model. The model highlights the role of the subsistence sector in shaping the patterns of the structural transformation and real exchange rate dynamics. Using inter-regional trade and migration data, I calibrate the model to decompose the ``China shock" into productivity shocks and trade shocks and show that the two features above arise naturally from the interaction between the labor market and observed shocks to productivity and trade costs. I find that while productivity growth is the primary source of the structural transformation, the accession to the WTO explains about 35% of the rise in the employment share and 20% of the increase in the real wage in the manufacturing sector. Welfare gains from the "WTO entry" are 27% on average and would be larger if complemented by relaxing labor restrictions further. By accounting for trade costs, the subsistence sector, and labor market frictions, the model generates dynamics for China's real exchange rate consistent with the data. The second chapter studies the effects of real estate investments by foreign Chinese on local economies in the United States. This chapter is co-authored with Leslie S. Shen and Calving Zhang. We document an unprecedented surge in housing purchases by foreign Chinese in the US over the past decade and analyzes their effects on US local economies. Using transaction-level data on housing purchases, we find that the share of purchases by foreign Chinese in the California real estate market increased more than tenfold during the period of 2007-2013 relative to earlier years. In particular, these purchases have been concentrated in zip codes that are historically populated by ethnic Chinese, making up for more than 10\% of the total real estate transactions in these neighborhoods in 2013. We exploit the cross-sectional variation in the concentration of Chinese population settlement across zip codes during the pre-sample period to instrument for the volume of housing purchases by foreign Chinese. Our results show that housing purchases by foreign Chinese significantly increased local housing prices as well as local employment. Our evidence highlights the role of foreign investments in local employment, especially in times of economic downturns. The third chapter proposes a novel approach to test alternative theories of risk sharing--full insurance, self-insurance, and private information--in a unified framework. Given the prevalence of informal insurance in developing countries to share consumption risks, studying risk sharing regimes is important. A distinguishing feature of the framework presented in this chapter is that it accounts for aggregate shocks and does not require data on interest rates, an important advantage for studying rural economies. Applying the approach to a longitudinal dataset from Tanzania, I reject models of full insurance and private information and find evidence of self-insurance. An incorrect inference on the insurance regime could underestimate the welfare loss from risk by as much as ten times.

Author: Jagdish N. Bhagwati
Publisher: Cambridge, Mass. : M.I.T. Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 392

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Book Description
Professor Bhagwati has brought together in this volume his most important theoretical writings on international economics through 1969. A major contribution to the pure theory of international trade -- his Economic Journal survey of the subject -- is reprinted with an addendum which brings it up to date. In addition, there are papers on propositions relating to gains from trade, and papers on tariffs, quotas and subsides, which cover both 'positive' and welfare aspects of trade theory. Reprinted here are his well-known papers on immiserizing growth, including a recent generalization, and on the theory of optimal policy intervention under domestic distortions. Four important essays on growth and development round out the volume. The fifteen essays reprinted in this collection comprise all the most original contributions and surveys which have established Professor Bhagwati as a leading theorist of international trade. The wide range of topics covered makes the whole book invaluable to all students of international economics.

Author: A. D. Woodland
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 360

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Book Description
Important issues in economic theory and international trade are addressed in this volume with contributions from internationally renowned researchers. The book begins with an examination of classical trade theory and welfare economics. It goes on to discuss international trade policy, includiong international trade agreements, taxation, tariffs and quotas. Attention then turmns to the role of market structure in joint ventures, innovation, tariff policy and political economy. The final section is devoted to economic dynamics and international economics, with an emphasis on learning mechanisms, sustainable growth and immigration.

Author: Peter B. Kenen
Publisher: Princeton University Press
ISBN: 0691196605
Category : Business & Economics
Languages : en
Pages : 272

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Book Description
Written form 1957 through 1978 by one of the foremost authorities in the field of international economics, this collection of Peter Kenen's previously published essays deals with issues in the pure theory of international trade, international monetary theory, and international monetary reform. The essays in Part I, "Trade, Tariffs, and Welfare," concern the roles of tangible and human capital in the determination of trade patterns, the joint determination of demand conditions and trade patterns, the gains from international trade, and the effects of migration on economic welfare. Part II, "International Monetary Theory and Policy," contains essays on the theory of gold-exchange standard, the determination of forward exchange rates, the demand for international reserves, economic integration and the delineation of currency areas, and the process of balance of payments adjustment under pegged and floating exchange rates. The essays in Part III, "Monetary Reform and the Dollar," are arranged in chonological order, from 1963 through 1977, and focus on the problems and progress of international monetary reform and on the functioning of the present international monetary system. Peter B. Kenen is Walker Professor of Economics and International Finance at Princeton University. The Princeton Sereies of Collected Essays provides facsimile reprints, in paperback and in cloth, of important articles by leading scholars. Originally published in 1981. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.