International economics : an introduction to theory and policy / Rajat Acharyya.

Format:

Book

Author/Creator:

Acharyya, Rajat, author.

Language:

English

Subjects (All):

International relations.

Physical Description:

1 online resource (657 pages)

Edition:

Second edition.

Place of Publication:

New York, New York : Oxford University Press, [2022]

Summary:

This book covers three aspects of the study of International Economics: pure theory of trade, trade policy, and theory of balance of payment and exchange rate.

Contents:

cover

Title

Copyright

Contents

Part I Basis and Gains from Inter-industry Trade

1 Basis of Inter-industry Trade

1.1 Arbitrage and Inter-industry Trade

1.2 Comparative Advantage

1.2.1 Public Policy and Induced Comparative Advantage:Fundamental Sources

1.2.2 Selective Factor Disadvantage, Innovations, and ShiftingComparative Advantage

1.2.3 Comparative Advantage in vertical stages of production:Global Value Chain

1.3 Digital and Virtual Trade

1.4 Advanced Topic: Revealed Comparative Advantage

2 Gains from Trade

2.1 Trade, Gains, and Redistribution

2.2 Resource Reallocation and Gains from Trade

2.3 Decomposition of GFT: Specialization and Exchange Gains

2.3.1 Substitution Possibility in Consumption and the Exchange Gain

2.3.2 Substitution Possibility in Production and Specialization Gain

2.4 Sufficient Conditions for GFT

2.5 Pollution: A Trade-Off between GFT and Environmental Degradation

2.6 Increasing Returns to Scale (IRS) and GFT

2.6.1 Case I: GFT under Weak IRS and Violation of Tangency Condition

2.6.2 Case II: GFT under Strong IRS and Non-convexity

Appendix A2

I. Returns to Scale and Convexity of the Production Set

3 Test of Comparative Advantage andMeasuring GFT

3.1 Measuring the Welfare Change: Compensating and Equivalent Variations

3.2 GFT by CV Measure

3.3 Equivalent Variation and GFT

3.4 A Test of Comparative Advantage: The Case of Japan

4 International Equilibrium and theTerms of Trade

4.1 Offer Curve of the Home Country

4.2 Backward Bending Offer Curve

4.3 Offer Curve under Constant Opportunity Cost

4.4 Foreign Offer Curve and the International Equilibrium

4.5 Welfare Properties of the International Equilibrium

4.5.1 Gains from trade revisited

4.5.2 Global Pareto optimality of free trade bundle

Appendix A4.

I. Geometric Measurement of the Import Demand Elasticity alongOffer Curve

II. Existence, Uniqueness, and Stability of International Equilibrium

III. Trade Indifference Curves and Alternative Derivation of Offer Curves

IV. Measurement and Trends in Barter TOT

Part II Theories of Comparative Advantage andPattern of Trade

Chapter 5 Technology and Trade

5.1 Constant Opportunity Cost, Technology, and Trade

5.2 Role of Relative Size of Trading Nations and Distribution of GFT

5.3 Advanced Topics

5.3.1 Many Commodity Extension

5.3.2 World Production Possibility Frontier and Many Countries Extension

5.3.3 Technology for Sale

5.4 International Trade and Technology Choice

Chapter 6 Factor Endowment and Trade

6.1 Assumptions and the Structure of the HOS Model

6.2 Autarchic Equilibrium and the Pattern of Trade

6.3 Two Properties of the Model: Output and Price Magnification Effects

6.3.1 Endowment Shock and Output Changes

6.3.2 Price Magnification Effect

6.4 Factor Prices at the Post-trade Equilibrium

Appendix A6

I. Full Employment Output Levels and Conditions forIncomplete Specialization

II. Price Magnification Effect

III. Algebraic Derivation of the Relative Supply Curve

IV. Output Magnification Effect or the Rybczynski Theorem

V. A Fixed Coefficient HOS Model

Chapter 7 Digressions on Factor Endowment Theory and Trade Empirics

7.1 Empirical Tests of the HO Theorem: Leontief Paradox

7.2 Factor Content and the HOV Theorem

7.3 Price Magnification Effect and FPE Revisited

7.3.1 Factor Immobility and Specific Factors

7.3.2 Non-traded Goods

7.3.3 Advanced Topic: FPE in Higher Dimensions

7.4 Advanced Topic: Evidence on Within Country Wage Movements and theWage Gap Debate

Appendix A7

I. Price Magnification Effect in the SF Model.

II. Growth in Labour Force and Relative Supply

Part III Basis and Gains from Intra-industry Trade

Chapter 8 Theories of Intra-industry Trade

8.1 IIT in Identical Products

8.2 IIT in Horizontally Differentiated Products

8.2.1 Love for Variety Approach, Monopolistic Competition, and IIT

8.2.2 Characteristic Approach

8.3 Product Development and IIT in Vertically Differentiated Products

8.4 Firm Heterogeneity and Export Decision

8.5 Advanced Topic: Intra-industry Trade Indices

8.5.1 The Grubel-Lloyd (GL) Index of Intra-industry Trade

8.5.2 Other Measures and Refinements of the GL Index ofIntra-industry Trade

Appendix A8

I. Algebra of Brander (1981) Model with Transport Cost: LinearMarket Example

II. Monopolistic Competition and IIT in Differentiated Goods:Krugman (1979)

Part IV Trade Intervention and Coordination

Chapter 9 Import Tariff and Export Subsidies

9.1 Economic Effects of an Import Tariff: A Partial Equilibrium Analysis

9.2 Revenue Motive and Revenue Maximizing Tariff

9.3 General Equilibrium Analysis: TOT and Volume of Trade (VOT) Effects

9.3.1 Change in Output, Consumption, and Volume of Trade for aSmall Economy

9.3.2 TOT Effect, Welfare Change, and the Optimum Tariff for aLarge Country

9.3.3 Tariff Retaliation and Trade War among Countries

9.4 Tariffs and Protection of Domestic Industries

9.4.1 Infant Industry Argument for Protection

9.4.2 Imported Input and Effective Rate of Protection

9.4.3 Tariff Protection in a Large Country: The Metzler Paradox

9.5 Tariff and Income Distribution

9.6 Export Subsidy, TOT Deterioration, and Welfare Loss

Appendix A9

I. Import Demand Elasticity and Its Decomposition

II. Change in Real Income and the Optimum Tariff

III. Revenue Maximizing and Optimum Tariffs

IV. Welfare Reaction Curves.

V. Lerner's Symmetry Result

VI. Lerner's Case: Government Spending and TOT Deterioration

VII. Symmetry of Lerner's Case and the Metzler Paradox

Chapter 10 Quantitative Restrictions, Non-tariff Barriers, and Equivalence

10.1 Import Quota, Implicit Tariff, and Scarcity Rent

10.2 Voluntary Export Restraints

10.3 Other Non-tariff Barriers

Chapter 11 Market Imperfection and Trade Policy

11.1 Competitive World Production and Domestic Monopoly

11.2 Protection of a Domestic Monopoly

11.2.1 Competitive Foreign Supply: Non-equivalence of Tariff and Quota

11.2.2 Monopoly Foreign Supplier and Strategic Competition

11.3 International Price Discrimination and Dumping

11.4 International Market Share Rivalry and Strategic Trade Policy

11.4.1 Export Subsidies and Market Share Rivalry

11.4.2 Tariff as an Export Promotion Strategy

11.5 Advanced Topic: Monopoly, Pareto Sub-Optimality, and GFT

Appendix A11

I. Decomposition of the Change in Real Income in aNon-competitive Economy

Chapter 12 Political Economy of Trade Policy

12.1 DUP Lobbying Activities

12.2 Political Economy of Trade Policy Choice

12.2.1 Democracy, Political Risk, and Political Support Approach

12.2.2 Lobbying and Contribution Approaches

Appendix A12

I. Comparison of Profits Under Import Quota and Import Tariff

Chapter 13 Market Failure, Distortions, and Trade Policy

13.1 Taxonomy of Distortions

13.1.1 Types of Distortions

13.1.2 Causes of Distortions

13.2 Optimal Intervention

13.2.1 Tariff or Quota as Optimal Policy Intervention for Foreign Distortion

13.2.2 Optimal Policy Intervention for Production Distortion

13.2.3 Optimal Policy Intervention for Consumption Distortion

Appendix A13

I. Product Distortion under Wage Differential

Chapter 14 Multilateralism and Regionalism.

14.1 Typology of Regional Trading Agreements (RTAs) andEconomic Cooperation

14.1.1 Different Stages of Regional Economic Cooperation

14.1.2 Evolution of the European Union through Successive Stagesof Cooperation

14.1.3 Open and Unanimous Regionalism

14.1.4 Scope and Coverage of RTAs

14.2 Bilateralism and Regionalism: Old and the Contemporary

14.2.1 Pre-World War I Bilateralism and Regionalism

14.2.2 Post-World War and Contemporary Regionalism

14.3 Regional Trading Agreements: Trends, Causes, and Effects

14.3.1 Growth, Composition, and Distribution of RTAs

14.3.2 Economic Effects and Gains from Regionalism

14.3.3 Why are RTAs Formed?

14.4 Multilateralism in the Post-WTO Era and Global Free Tra

14.4.1 From Regionalism to Multilateralism?

Part V Input Trade, Services, and Growth

Chapter 15 Trade, Growth, and Inclusion

15.1 International Trade and Growth

15.1.1 Trade as an Engine of Growth

15.1.2 Trade as Vent for Surplus

15.1.3 Trade, Redistribution, and Growth

15.1.4 Trade, Variety, and Growth

15.1.5 Import-led Growth (ILG)

15.1.6 Country Experiences

15.2 Growth, TOT, and Welfare

15.2.1 Secular Deterioration in TOT for a Primary Good Exporter

15.2.2 Immiserizing Growth

15.3 Trade, Growth, and Inclusion

Appendix A15

I. Diversification of the Export Basket

II. Composition of the Export Basket: Manufacturing andHigh-Technology Exports

Chapter 16 Foreign Capital Inflow, Multinationals, and Migration

16.1 Factor Flows and the Goods Price Equalization (GPE) Theorem

16.2 Foreign Capital Inflow: Causes and Consequences

16.2.1 Growth, Welfare, and Distributional Consequences of ForeignCapital Inflow

16.2.2 Foreign Capital Inflow and Aggregate Employment in the Host Country

16.3 Foreign Direct Investment and Multinational Corporations (MNCs).

16.3.1 Tariff Jumping Theory.

Notes:

Description based on print version record.

Other Format:

Print version: Acharyya, Rajat International Economics

ISBN:

0-19-268853-7

0-19-268852-9

9780191955549