ECONOMICS 756: INTERNATIONAL TRADE, II


Professor: Douglas Nelson
Office: 108 Tilton (Murphy Institute)
Phone: 865-5317



This course has two fundamental goals:


1) To develop an understanding of the intuition, theory and method underlying research on trade policy; and


2) To develop an overall picture of the body of research on international trade policy.


International Trade I (Econ 755) emphasized the development of general equilibrium tools for the analysis of international trade and their application to positive problems of the economics of international trade. The emphasis of that course was primarily theoretical. This semester we examine several important areas of current research on international trade: attempts to evaluate the aggregate welfare effects of international trade policy; theoretical and empirical work on the relationship between international trade and relative wages; theoretical and empirical work on the political economy of trade policy; and theoretical and empirical research on the relationships between international trade, trade policy, and growth.


Developments in research on trade policy have been intimately related to the development of virtually every branch of economics. Since we cannot hope to cover all the interesting and important branches of this important field, we will pursue the two goals with a dual strategy. We will cover a small number of topics in considerable depth, emphasizing the link (or lack thereof) between theory and empirical content in contemporary research on the topic. Every week the seminar will study (approximately) three papers in detail. Those papers will be presented and discussed by the members of the seminar. In addition to our detailed consideration of these topics, every student will be expected to prepare a research paper on some aspect of trade policy, broadly construed.


For several of this semester’s topics, we will draw on:

 

R. Feenstra (2004). Advanced International Trade: Theory and Evidence. Princeton: Princeton University Press. [Feenstra]


It is assumed that you have had graduate microeconomics (ECON 611) and international trade I (ECON 755). Standard sources you might want to keep handy are:


H. Varian (1984). Microeconomic Analysis. New York: Norton.


A. Dixit and V. Norman (1980). Theory of International Trade. Cambridge: Nisbet/Cambridge University Press. [Compact and clear. A masterly exposition of mainline trade theory. Useful to know also for its notation, which has become quite standard in trade theory.] (Dixit/Norman)


J. Bhagwati, A. Panagariya, and T.N. Srinivasan (1998). Lectures on International Trade. Cambridge: MIT Press [BPS]. [Excellent coverage of traditional and modern trade theory. Particularly good on developing theoretical intuition.]


K.Y. Wong (1995). International Trade in Goods and Factor Mobility. Cambridge: MIT Press. [An advanced text, similar coverage to BPS, less emphasis on intuition, more emphasis on technique, and a distinctive emphasis on factor mobility] (Wong)


A. Woodland (1982). International Trade and Resource Allocation. Amsterdam: North Holland. [My favorite graduate-level trade text. Builds all tools from scratch, with an emphasis on duality methods (like Dixit/Norman and Wong), with excellent exercises after each chapter. Unfortunately, now out of print.) [Woodland]


Additional texts on trade policy to which we will have occasional recourse are:


W.M. Corden (1997). Trade Policy and Economic Welfare. Oxford: Oxford University Press. [There is no better presentation of the general issues and approaches to modern research on trade policy] (Corden)


N. Vousden (1990). The Economics of Trade Protection. Cambridge: Cambridge University Press. [Especially useful for its presentation of current issues in trade policy research at a moderate technical level]

 

H. Bowen, A. Hollander, and J.-M. Viaene (1998). Applied International Trade Analysis. Ann Arbor: University of Michigan Press. [At about the same level as BPS, but with a stronger emphasis on applied work.] (BHV)


J. Bhagwati, ed. (1987). International Trade: Selected Readings. Cambridge: MIT Press. [A useful collection of classic and standard readings on international trade] (Bhagwati)


E. Helpman and P. Krugman (1985). Market Structure and Foreign Trade. Cambridge: MIT Press. [An excellent, synthetic treatment of theoretical research on the positive aspects of international trade under imperfect competition by two of the pioneers in the field.] (H&K, 1985)


E. Helpman and P. Krugman (1989). Trade Policy and Market Structure. Cambridge: MIT Press. [This book covers the normative theory associated with models of the sort developed in the previous book. While an easier read, this is also a considerably less satisfactory work.] (H&K, 1989)


G. Grossman, ed. (1992). Imperfect Competition and International Trade. Cambridge: MIT Press. [Excellent complement to the text treatments in the two Helpman/Krugman volumes.] (Grossman)


Some fairly extensive bibliographies of literatures covering many of the same topics that we will cover this term can be found at http://www.tulane.edu/~dnelson/BIBS/Bibs.htm. These are easiest to use in WordPerfect format, because you can use the outline feature.


Your performance in the course will be evaluated on the basis of: 1) active participation in the seminar (paper presentation and discussion); and 2) the preparation of a research paper.


1) With respect to seminar participation: I will expect all participants to have read (at least) all the assigned material (text and papers, whether they will be discussed or not) by the first class in which they are assigned. This is a necessary condition for intelligent participation and, thus, for a passing grade. A grade of “A” for this course requires a more active approach to the material involving discussion past the immediate content of the papers being presented. To that end, I strongly recommend reading beyond the required material on a regular basis.


2) With respect to the paper: To insure that everyone is on track for the paper I require a paper proposal to be submitted no later than the first class session in week 4. This must be typed and not more than two pages long. The paper itself is due in class on the last regularly scheduled class period. The paper must be original work, on a trade policy topic (though not necessarily on a topic we will cover in class). Plagiarism will not be tolerated. If you have any doubt about what plagiarism is, please see me before turning in your paper. There will be no second chances with respect to plagiarism. For those of you that are considering writing a dissertation in trade (or a field related to trade) I would strongly urge you to use this opportunity to identify the relevant theory and data some aspect of that work.



Short Syllabus: Economics 756



Topic I: Gains from Trade


Topic II: Economic Analysis of Trade Policy


Topic III: Optimal Policy under Factor Mobility


Topic IV: Oligopoly and Strategic Trade Policy


Topic V: Time, Information and Trade Activism


Topic VI: Political Economy of Trade Policy


Topic VII: Trade with Monopolistic Competition


Topic VIII: Geography, Agglomeration and Trade


Topic IX: Trade and Growth


Topic X: Trade and the Firm


Topic XI: Globalization of Production


Topic XII: Globalization and Labor Markets




Syllabus and Reading List: Econ 756


Topic I. Gains From Trade

 

● Basic Economics of Gains from Trade

 

*Dixit/Norman, Chapter 3, section 2


BPS, Chapter 18, sections 1-4.


Wong, Chapter 8, sections 1-4.


*A. Dixit (1985). “Tax Policy in Open Economies”. in A. Auerbach and M. Feldstein, Handbook of Public Economics (V.I). Amsterdam: North-Holland, pp. 313-374. Sections 1 and 2.

 

● Generalizing the CRS Case: Customs Unions and the Kemp-Wan Theorem (Alternative Topic)


M. Kemp and H. Wan (1976). “An Elementary Proposition Concerning the Formation of Customs Unions”. Journal of International Economics; V.6-#1, pp. 95-97. in Bhagwati.


M. Kemp and H. Wan (1993). The Welfare Economics of International Trade. Chur: Harwood. Part I.


Wong, Chapter 8, section 10


BPS, Chapter 31


R. Baldwin and A. Venables (1995). “Regional Economic Integration”. in G. Grossman and K. Rogoff, eds. Handbook of International Economics, V.III. Amsterdam: Elsevier, pp. 1597-1644.

 

● Implementing Gains from Trade with and without Lump-Sum Compensation (Alternative Topic)


BPS, Chapter 18, sections 5 and 6


*J.M. Grandmont and D. McFadden (1972). “A Technical Note on the Classical Gains from Trade”. Journal of International Economics; V.2-#2, pp. 109-125.


*A. Dixit and V. Norman (1980). “Gains from Trade: Commodity Taxes”. in Theory of International Trade. Oxford: Oxford University Press, pp. 79-80.


M. Kemp and H. Wan (1993). The Welfare Economics of International Trade. Chur: Harwood. Part II.


*P. Hammond and J. Sempere (1995). “Limits to the Potential Gains from Trade”. Economic Journal; V.105-#432, pp. 1180-1204


E. Grinols (1996). “Pure and Mixed Price and Income Compensation Schemes: Breaking Political Roadblocks to Trade Reform”. in R. Feenstra, G. Grossman and D. Irwin, eds. The Political Economy of Trade Policy. Cambridge: MIT, pp. 129-144.


*R. Guesnerie (2001). “Second Best Redistributive Policies: The Case of International Trade”. Journal of Public Economic Theory; V.3-#1, pp. 15-25.


*D. Spector (2001). “Is It Possible to Redistribute the Gains from Trade Using Income Taxation?”. Journal of International Economics; V.55-#2, pp. 441-460.

 

● Welfare Analytics under Variable Returns to Scale (Alternative topic)

 

Wong, Chapter 9, section 1


J. Markusen and J. Melvin (1984). “The Gains-from-Trade Theorem with Increasing Returns to Scale”. in H. Kierzkowski, ed. Monopolistic Competition and International Trade. Oxford: Oxford University Press, pp. 10-33.


M. Kemp and A. Schweinberger (1991). “Variable Returns to Scale, Non-Uniqueness of Equilibrium and the Gains from International Trade”. Review of Economic Studies; V.58-#4, pp. 807-816.


Topic II. Economic Analysis of Trade Policy

 

● The Economics of Protection: Applied Welfare Analysis

 

■ Some Useful Surveys on Trade and Protection


W.M. Corden (1975). “The Costs and Consequences of Protection: A Survey of Empirical Work”. in P. Kenen, ed. International Trade and Finance. New York: CUP, pp. 51-91.


W.M. Corden (1984). “The Normative Theory of International Trade”. in R. Jones and P. Kenen, eds. Handbook of International Economics, V.I. Amsterdam: North-Holland, pp. 63-130.


J. Anderson (1994). “The Theory of Protection”. in D. Greenaway and L.A. Winters, eds. Surveys in International Trade. Oxford: Blackwell, pp. 106-138.


R. Feenstra (1995). “Estimating the Effects of Trade Policy”. in G. Grossman and K. Rogoff, eds. Handbook of International Economics, V.III. Amsterdam: North-Holland, pp. 1553-1595.


S. Laird (1998). “Quantifying Commercial Policies”. in J. Francois and K. Reinert, eds. Applied Methods for Trade Policy Analysis: A Handbook. Cambridge: CUP, pp. 27-75.

 

■ Basic Applied Welfare Theory for Trade Policy


Woodland, Chapters 10 and 11


*BPS, Chapter 19


*B.N. Jeon and G. von Furstenberg (1986). “Techniques for Measuring the Welfare Effects of Protection: Appraising the Choices”. Journal of Policy Modeling; V.8-#2, pp. 273-303.


W. Martin (1998). “Measuring Welfare Changes with Distortions”. in J. Francois and K. Reinert, eds. Applied Methods for Trade Policy Analysis: A Handbook. Cambridge: CUP, pp. 76-93.


*J. Anderson and J.P. Neary (1996). “A New Approach to Evaluating Trade Policy”. Review of Economic Studies; V.63-#1, pp. 107-125.


J. Anderson (1995). “Tariff Index Theory”. Review of International Economics; V.3-#2, pp. 156-173.

 

*C. Bach and W. Martin (2001). “Would the Right Tariff Aggregator for Policy Analysis Please Stand Up?”. Journal of Policy Modeling; V.23-#6, pp. 621-635.

 

J.P. Neary and K. Roberts (1980).The Theory of Household Behavior under Rationing”. European Economic Review; V.13-#1, pp. 25-42.

 

■ Implementing Trade Policy Analysis

 

○ Partial Equilibrium


D. Rousslang and J. Suomela (1985). Calculating the Consumer and Net Welfare Costs to the US of Import Relief. Washington, D.C.: US-ITC.

 

D. Rousslang and J. Suomela (1988) “Calculating the Welfare Costs of Import Restrictions in the Imperfect Substitutes Model”. Applied Economics; V.20-#5, pp. 691-700.

 

M. Jones (1993). “The Geometry of Protectionism in the Imperfect Substitutes Model: A Reminder”. Southern Economic Journal; V.60-#1, pp. 235-238.

 

D. Rousslang (1991). “Welfare Cost of Import Restraints in the Presence of Domestic Taxes”. Journal of Policy Modeling; V.13-#3, pp. 459-465.


*J. Francois and H.K. Hall (1996). “Partial Equilibrium Modelling”. in J. Francois and K. Reinert, eds. Applied Methods for Trade Policy Analysis: A Handbook. Cambridge: CUP, pp. 122-155.


*J. Anderson and J.P. Neary (1994). “The Trade Restrictiveness of the Multi-Fibre Arrangement”. World Bank Economic Review; V.8-#2, pp. 171-189.


S.P. Magee (1973). “The Welfare Effects of Restrictions on US Trade”. Brookings Papers on Economic Activity; #3, pp. 65-108.


D. Tarr and M. Morkre (1984). Aggregate Costs to the US of Tariffs and Quotas on Imports. Washington, D.C.: FTC.


*G. Hufbauer and K. Elliott (1994). Measuring the Costs of Protection in the US. Washington, D.C.: IIE. (Chapters 1 and 2)

 

○ General Equilibrium

 

CGE Based Analysis


*K. Reinert and D. Roland-Holst (1996). “Social Accounting Matrices”. in J. Francois and K. Reinert, eds. Applied Methods for Trade Policy Analysis: A Handbook. Cambridge: CUP, pp. 94-121.


*S. Devarajan, D. Go, J. Lewis, S. Robinson, and P. Sinko (1996). “Simple General Equilibrium Modeling”. in J. Francois and K. Reinert, eds. Applied Methods for Trade Policy Analysis: A Handbook. Cambridge: CUP, 156-184.


*D. Roland-Holst, K. Reinert and C. Shiells (1994). “A General Equilibrium Analysis of North American Economic Integration”. in J. Francois and C. Shiells, eds. Modelling Trade Policy: Applied General Equilibrium Assessments of North American Free Trade. Cambridge: CUP, pp. 47-82.


J. Anderson and J.P. Neary (1994). “Measuring the Restrictiveness of Trade Policy”. World Bank Economic Review, V.8-#2, pp. 151-169.

 

J. Anderson (1998). Trade Restrictiveness Benchmarks. Economic Journal; V.108-#449, pp. 1111-1125.


*K. O’Rourke (1997). “Measuring Protection: A Cautionary Tale”. Journal of Development Economics; V.53-#1, pp. 169-183.

 

Regression-based Analysis

 

*H. Wall (1999). “Using the Gravity Model to Estimate the Costs of Protection”. Federal Reserve Bank of St. Louis, Review; January/February, pp. 33-40.


*E. Leamer (1988). “Measures of Openness”. in R. Baldwin, ed. Trade Policy Issues and Empirical Analysis. Chicago: University of Chicago Press, pp. 147-204.


*H. Wolff (1993). “Trade Orientation: Measurement and Consequences”. Estudios de EconomÍa; V.20-#3, pp. 51-86. [esp. pp. 51-75.]


*L. Pritchett (1996). “Measuring Outward Orientation in LDCs: Can It Be Done?”. Journal of Development Economics; V.49-#2, pp. 307-335.


E. Leamer (1990). “The Structure and Effects of Tariff and Nontariff Barriers in 1983". in R. Jones and A. Krueger, eds. The Political Economy of International Trade. Oxford: Blackwell, pp. 224-260.


*J. Frankel, E. Stein, and S. Wei (1995). “Trading Blocs and the Americas: The Natural, the Unnatural, and the Super-Natural”. Journal of Development Economics; V.47-#1, pp. 61-95.


*J. Harrigan (1996). “Openness to Trade in Manufactures in the OECD”. Journal of International Economics; V.40-#1/2, pp. 23-39.


R. Lawrence (1987). “Imports in Japan: Closed Markets or Minds?”. Brookings Papers on Economic Analysis; V.1987-#2, pp. 517-554.


G. Saxonhouse (1989). “Product Differentiation, Economies of Scale and Access to the Japanese Market”. in R. Feenstra, ed. Trade Policies for International Competitiveness. Chicago: University of Chicago Press/NBER, pp. 145-174.

 

J. Harrigan and R. Vanjani (2003). “Is Japan’s Trade (Still) Different?”. Journal of the Japanese and International Economies; V.17-#4, pp. 507-519.

 

○ Intermediate Goods and Effective Rates of Protection (Alternative topic)

 

Theory

 

BPS, Chapter 15


*W.M. Corden (1966). “The Structure of a Tariff System and the Effective Protective Rate”. Journal of Political Economy, V.74-#3, pp. 221-237.


*J. Bhagwati and T.N. Srinivasan (1973). “The General Equilibrium Theory of Effective Protection and Resource Allocation”. Journal of International Economics; V.3-#3, pp. 259-282. (Comment by Sendo (1974), Journal of International Economics, V.4-#2, pp. 213-215)


*Y. Uekawa (1979). “The Theory of Effective Protection, Resource Allocation and the Stolper-Samuelson Theorem: The Many Industry Case”. Journal of International Economics; V.9-#2, pp. 151-171.

 

J. Anderson (1998). Effective Protection Redux”. Journal of International Economics; V.44-#1, pp. 21-44.

 

Empirical Research


*D. Greenaway (1988). “Effective Tariff Protection in the UK”. Oxford Bulletin of Economics and Statistics; V.50-#?, pp. 313-324.


*C. Ennew, D. Greenaway, and G. Reed (1990). “Further Evidence on Effective Tariffs and Effective Protection in the UK”. Oxford Bulletin of Economics and Statistics; V.52-#1, pp. 69-78.

 

■ Voluntary Export Restraints

 

○ Effects on Importers

 

T. Murray, W. Schmidt and I. Walter (1978). “Alternative Forms of Protection against Market Disruption”. Kyklos; V.31-#4, pp. 624-637.

 

B. Hindley (1980). “Voluntary Export Restraints and Article XIX of the GATT”. in J. Black and B. Hindley, eds. Current Issues in Commercial Policy and Diplomacy; New York: St. Martins, pp. 52-72.

 

B. Hindley (198?). “Voluntary Export Restrains and the GATT’s Main Escape Clause”. World Economy, V.??-#?, pp. 313-341.

 

C. Turner (1983). “Voluntary Export Restraints on Trade Going to the United States”. Southern Economic Journal; V.49-#3, pp. 793-803.

 

B.J. Liu (1986). “On Voluntary Export Restraints”. Economic Essays; V.15-#1, pp. 45-62.

 

C. Hamilton (1985). “Voluntary Export Restraints and Trade Diversion”. Journal of Common Market Studies; V.23-#4, pp. 345-355.

 

F. Dei (1985). “Voluntary Export Restraints and Foreign Investment”. Journal of International Economics; V.19-#3/4, pp. 305-312.

 

K. Krishna (1989). “What do VERs Do?”. in R. Sato and J. Nelson, eds. Beyond Trade Friction: Japan-US Economic Relations. Cambridge: CUP, pp. 76-92.

 

○ Effects on Exporters

 

C. Hamilton (1986). “Import Quotas and Voluntary Export Restraints: Focusing on Exporting Countries”. in. C. Findlay and R. Garnaut, eds. The Political Economy of Manufacturing Sector Protection in ASEAN and Australia; Sydney: Allen and Unwin, pp. 214-234.

 

C. Hamilton (1986). “ASEAN Systems for Allocation of Export Licenses under VERs”. in. C. Findlay and R. Garnaut, eds. The Political Economy of Manufacturing Sector Protection in ASEAN and Australia; Sydney: Allen and Unwin, pp. 235-247.

 

C. Hamilton (1986). “An Assessment of Voluntary Export Restraints on Hong Kong Exports to Europe and the US”. Economica; V.53-#211, pp. 159-178.

 

C. Hamilton (1988). “Restrictiveness and International Transmission of the ‘New’ Protectionism”. in R. Baldwin, C. Hamilton and A. Sapir, eds. Issues in US-EC Trade Relations. Chicago: University of Chicago Press, pp. 199-224.

 

T. Bark and J. deMelo (1988). “Export Quota Allocations, Export Earnings, and Market Diversification”. World Bank Economic Review; V.2-#3, pp. 341-348.

 

T. Bark and J. deMelo (1989). “Efficiency and Export Earnings Implications of Two-Tier Quota Allocation Rules”. International Economic Journal; V.3-#3, pp. 31-42.

 

J. de Melo and L.A. Winters (1990). “Voluntary Export Restraints and Resource Allocation in Exporting Countries”. World Bank Economic Review; V.4-#2, pp. 209-233.

 

I. Trela and J. Whalley (1995). “Internal Quota-Allocation Schemes and the Costs of the MFA”. Review of International Economics; V.3-#3, pp. 284-306.

 

○ The Multi-Fibre Arrangement

 

D. Greenaway (1986). “Estimating the Welfare Affects of Voluntary Export Restraints and Tariffs: An Application to Non-Leather Footwear in the UK. Applied Economics; V.18-#?, pp. 1065-1083.

 

R. Erzan, J. Goto and P. Holmes (1990). “Effects of the Multi-Fibre Arrangement on Developing Countries’ Trade: An Empirical Investigation”. in C. Hamilton, ed. Textiles Trade and the Developing Countries. Washington, DC: The World Bank.

 

I. Trela and J. Whalley (1990). “Global Effects of Developed Country Trade Restrictions in Textiles and Apparel”. Economic Journal; V.100-#403, pp. 1190-1205.

 

K. Krishna and L.H. Tan (1994). “On the Importance of Rent Sharing in the Multi-Fibre Arrangement: Evidence from US-Hong Kong Trade in Textiles”. in A. Deardorff and R. Stern, eds. Analytical and Negotiating Issues in the Global Trading System. Ann Arbor: University of Michigan Press, pp. 95-131.

 

K. Krishna, R. Erzan and L.H. Tan (1994). “Rent Sharing in the Multi-Fibre Arrangement: Theory and Evidence from US Apparel Imports from Hong Kong”. Review of International Economics; V.2-#1, pp. 62-73.

 

K. Krishna, W. Martin, and L.H. Tan (1997). “Imputing License Prices: The Limitations of a Cost-Based Approach”. Journal of Development Economics; V.52-#2, pp. 355-374.

 

K. Krishna and L.H. Tan (1998). Rags and Riches: Implementing Apparel Quotas under the Multi-Fibre Arrangement. Ann Arbor: University of Michigan Press.


*J. Anderson and J.P. Neary (1994). “The Trade Restrictiveness of the Multi-Fibre Arrangement”. World Bank Economic Review; V.8-#2, pp. 171-189.

 

● Distortions and Policy Targeting

 

■ Basic Theory


*BPS, Chapters 17 and 20.


BPS, Chapters 22-28.


Wong, Chapter 11, sections 1-5


*A. Dixit (1985). “Tax Policy in Open Economies”. in A. Auerbach and M. Feldstein, Handbook of Public Economics (V.I). Amsterdam: North-Holland, pp. 313-374. Sections 2 and 3.


*H.G. Johnson (1965). “Optimal Trade Intervention in the Presence of Domestic Distortion”. R. Caves, et al. Trade, Growth and the Balance of Payments. also in Bhagwati.


*J. Bhagwati (1971). “The Generalized Theory of Distortions and Welfare”. J. Bhagwati, et al. Trade, Balance of Payments and Growth; also in Bhagwati.


T.N. Srinivasan (1996). “The Generalized Theory of Distortions and Welfare Two Decades Later”. in R. Feenstra, G. Grossman, and D. Irwin, eds. The Political Economy of Trade Policy. Cambridge: MIT Press, pp. 3-25.


*J. Anderson, G. Bannister and J.P. Neary (1995). “Domestic Distortions and International Trade”. International Economic Review; V.36-#1, pp. 139-157.


*P. Krishna and A. Panagariya (2000). “A Unification of the Theory of Second Best”. Journal of International Economics; V.52-#2, pp. 235-257.

 

■ The Infant Industry Argument: An Example


Corden, Chapter 9


M. Kemp (1960). “The Mill-Bastable Infant-Industry Dogma”. Journal of Political Economy. V.68-#1, pp. 65-67.


*M. Kemp (1974). “Learning by Doing: Formal Tests for Intervention in an Open Economy”. Keio Economic Studies. V.11-#1, pp. 1-7.


*R. Baldwin (1969). “The Case Against Infant-Industry Protection”.Journal of Political Economy. V.77-#2, pp. 295-305.


*A. Krueger and B. Tuncer (1982). “An Empirical Test of the Infant-Industry Argument”. American Economic Review. V.72-#5, pp. 1142-1152.


R.E.B. Lucas (1984). “An Empirical Test of the Infant Industry Argument: Comment”. American Economic Review; V.74-#5, pp. 1110-11. [reply]


*A. Harrison (1994). “An Empirical Test of the Infant Industry Argument: Comment”. American Economic Review; V.84-#4, pp. 1090-95. [reply follows, pp. 1096]


L. Westphal (1982). “Fostering Technological Mastery by Means of Selective Infant-Industry Protection”. in M. Syrquin and S. Teitel, Trade, Stability, Technology and Equity in Latin America. New York: Academic Press, pp. 255-279.


M. Bell, B. Ross-Larson, and L. Westphal (1984). “Assessing the Performance of Infant Industries”. Journal of Development Economics; V.16-#?, pp. 101-128.

 

■ Tariffs, Optimal and Otherwise: Another Example (Alternative)


BPS, Chapter 21


*A. Dixit (1985). “Tax Policy in Open Economies”. in A. Auerbach and M. Feldstein, Handbook of Public Economics (V.I). Amsterdam: North-Holland, pp. 313-374. Sections 3 and 5.


*R. Jones (1969). “Tariffs and Trade in General Equilibrium”. American Economic Review. V.59-#3, pp. 418-423.


*E. Bond (1990). “The Optimum Tariff Structure in Higher Dimensions”.International Economic Review; V.31-#1, pp. 103-116.


J.P. Neary (1993). “Welfare Effects of Tariffs and Investment Taxes”. in W. Ethier, E. Helpman and J.P. Neary, eds. Theory, Policy and Dynamics in International Trade. New York: Cambridge University Press. pp. 131-156

 

■ Immiserizing Growth: Another Example (Alternative)


BPS, Chapter 29.


Wong, Chapter 10, Section 6


*J. Bhagwati (1958). “Immiserizing Growth: A Geometrical Note”. Review of Economic Studies; V.25-#3, pp. 201-205. [in Caves and Johnson]


*H.G. Johnson (1967). “The Possibility of Income Loss from Increased Efficiency or Factor Accumulation in the Presence of Tariffs”. Economic Journal; V.77-#305, pp. 151-154. [in Bhagwati]


R. Brecher and C. DÍaz-Alejandro (1977). “Tariffs, Foreign Capital and Immiserizing Growth”. Journal of International Economics; V.7-#4, pp. 317-322. [in Bhagwati]

 

● Incremental Policy Reform (Alternative)


BPS, Chapter 35


*A. Dixit (1985). “Tax Policy in Open Economies”. in A. Auerbach and M. Feldstein, Handbook of Public Economics (V.I). Amsterdam: North-Holland, pp. 313-374. Section 4.


*W. Diewert, A. Turunen-Red and A. Woodland (1989). “Productivity- and Pareto-Improving Changes in Taxes and Tariffs”. Review of Economic Studies; V.56-#2, pp. 199-216.


*J. Anderson and J.P. Neary (1992). “Trade Reform with Quotas, Partial Rent Retention and Tariffs”. Econometrica; V.60-#1, pp. 57-76.

 

J. Anderson (2002). Trade Reform Diagnostics with Many Households, Quotas and Tariffs”. Review of International Economics; V.10-#2, pp. 215-236.

 

P. Neary (1998). “Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs and Subsidies to High Technology Industries”. Scandinavian Journal of Economics; V.100-#1, pp. 187-206.

 

J. Ju and K. Krishna (2000). “Welfare and Market Access Effects of Piecemeal Tariff Reform”. Journal of International Economics; V.51-#2, pp. 305-316.

 

*J. Anderson and P. Neary (2006). “Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform”. Journal of International Economics; forthcoming.


Topic III. Optimal Policy under International Factor Mobility

 

● The Basic Analytics of International Factor Mobility--The Mundell Model and Beyond

 

■ Characrterization and Directions of Trade

 

BPS, Chapter 32

 

Wong, Chapter 4


R. Ruffin (1984). “International Factor Movements”. in R. Jones and P. Kenen, eds. Handbook of International Economics--Vol. I. Amsterdam: North-Holland, pp. 237-288.


*R. Mundell (1957) “International Trade and Factor Mobility”, American Economic Review, V.47-#3, pp. 321-335.


M. Kemp (1966). “The Gain from International Trade and Investment: A Neo-Heckscher-Ohlin Approach”. American Economic Review, V.56-#4, pp.788-809.


R. Jones (1967). “International Capital Movements and the Theory of Tariffs and Trade”.  Quarterly Journal of Economics, V.81-#1, pp. 1-38. (Comment by Inada/Kemp (1969) Quarterly Journal of Economics; V.83-#3, pp. 524-528)


J. Chipman (1971). “International Trade with Capital Mobility: A Substitution Theorem”. in J. Bhagwati, et al. eds. Trade, Balance of Payments and Growth. Amsterdam: North-Holland, pp. 201-237.


*W. Ethier and S. Ross (1971). “International Capital Movements and Long-Run Diversification”. Journal of International Economics; V.1-#3, pp. 301-314.


Y. Uekawa (1972). “On the Existence of Incomplete Specialization in International Trade with Capital Mobility”. Journal of International Economics; V.2-#1, pp. 1-23.


*R. Jones and R. Ruffin (1975). “Trade Patterns with Capital Mobility”. in M. Parking and A.R. Nobay, eds. Current Economic Problems. Cambridge: Cambridge University Press, pp. 307-332.


*J.P. Neary (1985). “International Factor Mobility, Minimum Wage Rates, and Factor Price Equalization: A Synthesis”. Quarterly Journal of Economics; V.100-#3, pp. 551-570.


L. Svensson (1984). “Factor Trade and Goods Trade”. Journal of International Economics; V.16-#3/4, pp. 365-378.


J. Markusen and L. Svensson (1985). “Trade in Goods and Factors with International Differences in Technology”. International Economic Review; V.26-#1, pp. 175-192.


M. Ohyama (1989). “Factor Endowments and the Pattern of Commodity and Factor Trade”. Keio Economic Studies; V.26-#1, pp. 19-29.


*W. Ethier and L. Svensson (1986). “The Theorems of International Trade with Capital Mobility”. Journal of International Economics; V.20-#1/2, pp. 21-42.

 

*R. Falvey and U. Kreickemeier (2005). “Globalisation and Factor Returns in Competitive Markets”. Journal of International Economics; V.66-#1, pp. 233-248.


K.Y. Wong (1988). “International Factor Mobility and the Volume of Trade: An Empirical Study”. in R. Feenstra, ed. Empirical Methods for International Trade. Chicago: University of Chicago Press/NBER, pp. 231-250.


A. Wood (1994). “Give Heckscher-Ohlin A Chance!”. Weltwirtschaftliches Archiv; V.130-#1, pp. 20-49.


J. Gaisford (1995). “International Capital Mobility, The Factor Content of Trade and Leontief Paradoxes”. Journal of International Economics; V.39-#1/2, pp. 175-183.

 

■ Trade and Factor Mobility: Complements or Substitutes


J. Markusen (1983). “Factor Movements and Commodity Trade as Complements”. Journal of International Economics; V.14-#3/4, pp. 341-356.


K.Y. Wong (1986). “Are International Trade and Factor Mobility Substitutes?”. Journal of International Economics; V.21-#1/2, pp. 25-43.


V. Norman and A. Venables (1995). “International Trade, Factor Mobility, and Trade Costs”. Economic Journal; V.105-#433, pp. 1488-1504.

 

● Optimal Policy with Factor Mobility


G.D.A. McDougall (1960), “The Benefits and Costs of Private Investment From Abroad”, Bulletin of the Oxford University Institute of Statistics, V.22-#3, pp. 189-211.


M. Kemp (1962). “Foreign Investment and the National Advantage”. Economic Record, V.38-#?, pp. 56-62.


J. Chipman (1972). “The Theory of Exploitative Trade and Investment Policies: A Reformulation and Synthesis”. in L. DiMarco, ed. International Economics and Development. New York: Academic Press, pp. 209-244.


R. Brecher (1983). “Second-Best Policy for International Trade and Investment”. Journal of International Economics; V.14-#3/4, pp. 313-320.


S.P. Das (1986). “Optimal Taxation of Foreign Capital when Its Movements are Sluggish”. Journal of International Economics; V.21-#3/4, pp. 351-360.


E. Grinols (1986). “Foreign Investment and Economic Growth: Characterization of a Second-Best Policy for Welfare Gains”. Journal of International Economics; V.21-#1/2, pp. 165-171.


E. Bond (1991). “Optimal Tax and Tariff Policies with Tax Credits”. Journal of International Economics; V.30-#3/4, pp. 317-329.


J.P. Neary (1993). “Welfare Effects of Tariffs and Investment Taxes”. in W. Ethier, E. Helpman and J.P. Neary, eds. Theory, Policy and Dynamics in International Trade. Cambridge: CUP, pp. 131-156.

 

● Optimal Policy with Commodity and Factor Mobility: The Ramaswami Proposition


V.K. Ramaswami (1968). “International Factor Movement and the National Advantage”. Economica; V.35-#139, pp. 309-310. (Comment by Webb and Response, (1970) Economica, V.37-#?, pp. 81-85)


J. Bhagwati (1979). “International Factor Movements and National Advantage”. Indian Economic Review; V.14-#2, pp. 73-100.


K.Y. Wong (1983). “On Choosing Among Trade in Goods and International Capital and Labor Mobility”. Journal of International Economics; V.14-#3/4, pp. 223-250.


R. Jones and S. Easton (1990). “Foreign Investment and International Migration: Analytics and Extensions of the Basic Model”. Keio Economic Studies; V.27-#1, pp. 1-20.


R. Brecher and E. Choudhri (1987). “International Migration versus Foreign Investment in the Presence of Unemployment”. Journal of International Economics; V.23-#3/4, pp.329-342.


W. Ethier (1987). “Bundled International Factor Mobility”. In H. Kierzkowski, ed. Protection and Competition in International Trade. Oxford: Blackwell, pp. 99-111.


L. Cheng and K.Y. Wong (1990). “On the Strategic Choice Between Capital and Labor Mobility”. Journal of International Economics; V.28-#3/4, pp. 291-314.


Topic IV. Oligopoly and Strategic Trade Policy

 

● Domestic Market Power


Corden, Chapter 8


*A.A. Auquier and R. Caves (1979), “Monopolistic Export Industries, Trade Taxes, and Optimal Competition Policy”, Economic Journal. V.89-#355; pp. 559-581.


*H. Katrak (1980). “Multinational Monopolies and Monopoly Regulation”.Oxford Economic Papers; V.32-#3, pp. 453-466.


*S. Donnenfeld (198?). “Domestic Regulation and the Preservation of Monopoly Power in Foreign Markets”. Southern Economic Journal; V.??-#?, pp. 954-965.

 

● Foreign Market Power


*H&K (1989), Chapter 4


J. Brander and B. Spencer (1981). “Tariffs and the Extraction of Foreign Monopoly Rents under Potential Entry”. Canadian Journal of Economics; V.14-#3, pp. 371-389. (Bhagwati)


*J. Brander and B. Spencer (1984), “Trade Warfare: Tariffs and Cartels”, Journal of International Economics. V.16-#3/4; pp. 227-242.


*R. Jones and S. Takemori (1989). “Foreign Monopoly and Optimal Tariffs for the Small Open Economy”. European Economic Review; V.33-#9, pp. 1691-1707.


K. Krishna (1991). “Making Altruism Pay in Auction Quotas”. in E. Helpman and A. Razin, eds. International Trade and Trade Policy. Cambridge: MIT Press, pp. 46-65.

 

● Trade Patterns with Oligopolistic Competition


*H&K (1985), Chapter 5


*J. Markusen (1981). “Trade and the Gains from Trade with Imperfect Competition”. Journal of International Economics; V.11-#4, pp. 531-551. (Grossman)


*J. Brander and P. Krugman (1983). “A ‘Reciprocal Dumping’ Model of International Trade”. Journal of International Economics; V.15-#3/4, pp. 313-321. (Grossman)

 

● Trade Policy for Rent-Shifting with Cournot Competition

 

■ Basic Analysis


*H&K (1989), Chapter 5


BPS, Chapter 30


*J. Brander and B. Spencer (1985), “Export Subsidies and International Market Share Rivalry”, Journal of International Economics. V.18-#1/2; pp. 83-100.


*J. Brander and B. Spencer (1984). “Tariff Protection and Imperfect Competition”. in H. Kierzkowski, ed. Monopolistic Competition and International Trade. Oxford: OUP, pp. (Grossman)


A. Dixit (1984). “International Trade Policies for Oligopolistic Industries”.Economic Journal; V.94-#supplement, pp. 1-16. (Bhagwati)


*J. Markusen and A. Venables (1988). “Trade Policy with Increasing Returns and Imperfect Competition: Contradictory Results from Competing Assumptions”. Journal of International Economics; V.24-#3/4, pp. 299-316. (Grossman)


A. Dixit and G. Grossman (1986). “Targeted Export Promotion With Several Oligpolistic Industries”, Journal of International Economics. V.21-#3/4; pp. 233-249.

 

■ Alternative Behavioral Assumptions


J. Bulow, J. Genakoplos and P. Klemperer (1985). “Multimarket Oligopoly: Strategic Substitutes and Strategic Complements”. Journal of Political Economy; V.93-#3, pp. 488-511.


*J. Eaton and G. Grossman (1986), “Optimal Trade and Industrial Policy Under Oligopoly”. Quarterly Journal of Economics. V.101-#2; pp. 383-406. (Grossman and Bhagwati)


L. Cheng (1988), “Assisting Domestic Industries under International Oligopoly: The Relevance of the Nature of Competition to Optimal Policies”.American Economic Review; V.78-#4; pp. 746-758.


K. Krishna and M. Thursby (1991). “Optimal Policies with Strategic Distortions”. Journal of International Economics; V.31-#3/4, pp. 291-308.


*D. Laussel (1992). “Strategic Commercial Policy Revisited: A Supply-Function Equilibrium Model”. American Economic Review; V.82-#1, pp. 84-99.


D. deMeza (1989). “Not Even Strategic Trade Theory Justifies Export Subsidies”. Oxford Economic Papers; V.41-#?, pp. 720-736.


*S. Ben-Zvi and E. Helpman (1992). “Oligopoly in Segmented Markets”. (Grossman)

 

■ Evaluating Trade Policy in An Oligopolistic Industry, The Case of Automobiles


A. Dixit (1988). “Optimal Trade and Industrial Policies for the U.S. Automobile Industry”. in R. Feenstra, ed. Empirical Methods for International Trade. Cambridge: MIT Press, pp. 141-165. Also in Grossman.

 

K. Krishna, K. Hogan, and P. Swagel (1994). “The Non-Optimality of Optimal Trade Policies: The US Automobile Industry Revisited, 1979-1985". in P. Krugman and A. Smith, eds. Empirical Studies of Strategic Trade Policy. Chicago: University of Chicago Press/NBER, pp. 11-37.

 

P. Goldberg (1995). “Product differentiation and Oligopoly in International Markets: The Case of the US Automobile Industry”. Econometrica; V.63-#4, pp. 891-952.

 

S. Berry, J. Levinsohn, and A. Pakes (1995). “Automobile Prices in Market Equilibrium”. Econometrica; V.63-#4, pp. 841-890.

 

*S. Berry, J. Levinsohn, and A. Pakes (1999). “Voluntary Export Restraints in Automobiles: Evaluating a Trade Policy”. American Economic Review; V.89-#3, pp. 400-430.

 

J. Ries (1995). “Windfall Profits and Vertical Relationships: Who Gained in the Japanese Auto Industry from VERs?”. Journal of Industrial Economics; V.41-#3, pp. 259-76

 

M. Fuss, S. Murphy and L. Waverman (1992). “The State of North American and Japanese Motor Vehicle Industries: A Partially Calibrated Model to Examine the Impacts of Trade Policy Changes”. NBER Working Paper; #4225.

 

deMelo, J. and D. Tarr (1996). “VERs Under Imperfect Competition and Foreign Direct Investment: A Case Study of the US-Japan Auto VER”. Japan and the World Economy; V.8-1, pp. 11-33.

 

■ International R&D and Trade Policy


*B. Spencer and J. Brander (1983). “International R&D Rivalry and Industrial Strategy”. Review of Economic Studies; V.50-#4, pp. 707-722.


L. Cheng (1984). “International Competition in R&D and Technological Leadership”. Journal of International Economics; V.17-#1/2, pp. 15-40.


L. Cheng (1987). “Optimal Trade and Technology Policies: Dynamic Linkages”. International Economic Review; V.28-#3, pp. 757-776.


A. Dixit (1988). “International R&D Competition and Policy”.  in A.M. Spence and H.A. Hazard, eds. International Competitiveness. Cambridge: Ballinger, pp. 149-171.


J. Reitzes (1991). “The Impact of Quotas and Tariffs on Strategic R&D Behavior”. International Economic Review; V.32-#4, pp. 985-1007.


K. Bagwell and R. Staiger (1992). “The Sensitivity of Strategic and Corrective R&D Policy in Battles for Monopoly”. International Economic Review; V.33-#4, pp. 795-816.


*K. Bagwell and R. Staiger (1994). “The Sensitivity of Strategic and Corrective R&D Policy in Oligopolistic Industries”. Journal of International Economics; V.36-#1/2, pp. 133-150.


*K. Miyagiwa and Y. Ohno (1997). “Strategic R&D Policy and Appropriability”. Journal of International Economics; V.42-#1/2, pp. 125-148.


K. Miyagiwa and Y. Ohno (1995). “Closing the Technology Gap under Protection”. American Economic Review; V.85-#4, pp. 755-770.


R. Jensen and M. Thursby (1996). “Patent Races, Product Standards, and International Competition”. International Economic Review; V.37-#1, pp. 21-49.


*D. Leahy and J.P. Neary (1996). “International R&D Rivalry and Industrial Strategy without Government Commitment”. Review of International Economics; V.4-#3, pp. 322-338.


D. Leahy and J.P. Neary (1997). “Public Policy Towards R&D in Oligopolistic Industries”. American Economic Review; V.87-#4, pp. 642-662.


O. Cadot and D. Desruelle (1998). “R&D: Who Does the R, Who Does the D”. Journal of International Economics; V.46-#1, pp. 87-103.

 

J.-H. Park (2001). “Strategic R&D Policy under Vertically Differentiated Oligopoly”. Canadian Journal of Economics; V.34-#4, pp. 967-987.

 

D. Zhou, B. Spencer and I. Vertinsky (2002). “Strategic Trade Policy with Endogenous Choice of Quality and Asymmetric Costs”. Journal of International Economics; V.56-#2, pp. 205-232.

 

N. Jinji (2003). “Strategic Policy for Product R&D with Symmetric Costs”. Canadian Journal of Economics; V.36-#4, pp.992-1006.

 

● Trade Policy and Equilibrium

 

■ Trade Policy and Equilibrium, I: Monopoly


*H&K (1989), Chapter 3 (pp. 27-41)


*J. Bhagwati (1965). “On the Equivalence of Tariffs and Quotas”. in R. Baldwin, et al. Trade, Growth and the Balance of Payments; Chicago: Rand McNally, pp. 53-67.


*W. Takacs (1978). “The Nonequivalence of Tariffs, Import Quotas, and Voluntary Export Restraints”. Journal of International Economics; V.8-#4, pp. 565-573.

 

■ Trade Policy and Equilibrium, II--Non-Collusive Oligopoly


*H&K, Chapter 6


R. Harris (1985), “Why Voluntary Export Restraints are ‘Voluntary’”. Canadian Journal of Economics. V.18-#4; pp. 799-809.


C.-C. Mai and H. Hwang (1988). “Why Voluntary Export Restraints are Voluntary: An Extension”. Canadian Journal of Economics; V.21-#4, pp. 877-882.


J. Karikari (1991). “On Why Voluntary Export Restraints Are Voluntary”. Canadian Journal Economics; V.24-#1, pp. 228-233.


*K. Krishna (1989), “Trade Restrictions as Facilitating Devices”. Journal of International Economics. V.26-#3/4, pp. 251-270. (Grossman)

 

■ Trade Policy and Equilibrium, III--Collusive Oligopoly


*H&K (1989), Chapter 3 (pp. 41-47).


*C. Davidson (1984), “Cartel Stability and Tariff Policy”, Journal of International Economics. V.17-#3/4; pp. 219-237.


*J. Rotemberg and G. Saloner (1989). “Tariffs vs Quotas with Implicit Collusion”. Canadian Journal of Economics; V.22-#2, pp. 237-244.


K.C. Fung (1987). “Industry Structure, Anti-Trust and Tariffs”. International Journal of Industrial Organization. V.5-#4, pp. 447-456.


R. Rothschild (1986). “Raising Rivals' Costs: Regulation as a Competitive Strategy in Intra-Industry Trade”. in D. Greenaway and P. Tharakan, eds. Imperfect Competition and International Trade. Sussex: Wheatsheaf, pp. 34-46.


R. Rothschild (1988). “The Impact of Market Share, Tariffs and Quotas on the Performance of International Cartels”. Economics Letters; V.27-#1, pp. 79-82.


R. Rothschild (1990). “The Impact of Tariffs and Quotas on Collusion in International Markets”. Manchester School; V.58-#2, pp. 105-119.


Topic V. Time, Imperfect/Asymmetric Information and Trade Activism

 

● Terms-of-Trade Uncertainty and Tariffs as Insurance


*D. Newberry and J. Stiglitz (1984). “Pareto Inferior Trade”. Review of Economic Studies. V.51-#1, pp. 1-12.


*J. Eaton and G. Grossman (1985). “Tariffs as Insurance: Optimal Commercial Policy When Domestic Markets are Incomplete”. Canadian Journal of Economics. V.18-#2, pp. 258-272.


*A. Dixit (1987). “Trade and Insurance with Moral Hazard”. Journal of International Economics; V.23-#3/4, pp. 201-220

 

● Time Inconsistency and Trade Activism


*R. Staiger and G. Tabellini (1987). “Distortionary Trade Policy and Excessive Protection”. American Economic Review; V.77-#5, pp.


H. Lapan (1988). “The Optimal Tariff, Production Lags, and Time Consistency”. American Economic Review. V.78-#3, pp. 395-401.


R. Staiger and G. Tabellini (1989). “Rules and Discretion in Trade Policy”. European Economic Review; V.33-#6, pp. 1265-1277.


K. Matsuyama (1990). “Perfect Equilibria in a Trade Liberalization Game”.American Economic Review; V.80-#3, pp. 480-492.


A. Tornell (1991). “On the Ineffectiveness of Made-to-Measure Protectionist Programs”. in E. Helpman and A. Razin, eds. International Trade and Trade Policy. Cambridge: MIT Press, pp. 66-79.

 

● Asymmetric Information and Trade Activism


*W. Mayer (1984). “The Infant-Export Industry Argument”. Canadian Journal of Economics. V.17-#2, pp. 249-269.


*G. Grossman and H. Horn (1988). “Infant Industry Protection Reconsidered: The Case of Informational Barriers to Entry”. Quarterly Journal of Economics. V.103-#4, pp.767-787.


*K. Bagwell and R. Staiger (1989). “The Role of Export Subsidies when Product Quality is Unknown”. Journal of International Economics; V.27-#1/2, pp. 69-89.


*K. Bagwell (1991). “Optimal Export Policy for an New Product Monopoly”. American Economic Review; V.81-#5, pp. 1156-1169.


*H. Flamm and R. Staiger (1991). “Adverse Selection in Credit Markets and Infant Industry Protection”. in E. Helpman and A. Razin, eds. International Trade and Trade Policy. Cambridge: MIT Press, pp. 96-117.

 

● Asymmetric Information and Strategic Trade Policy

 

L. Qiu (1994). Optimal Strategic Trade Policy under Asymmetric Information”. Journal of International Economics; V.36-#3/4, pp. 333-354.

 

E. Dinopoulos, T. Lewis and D. Sappington (1995). “Optimal Industrial Targeting with Unknown Learning-by-Doing”. Journal of International Economics; V.38-#3/4, pp. 275-295.

 

S.L. Brainard and D. Martimort (1996). “Strategic Trade Policy Design with Asymmetric Information and Public Contracts”. Review of Economic Studies; V.63-#1, pp. 81-105.

 

G. Maggi (1998). “A Note on ‘Strategic Trade Policy Design with Asymmetric Information and Public Contracts’”. Review of Economic Studies; V.65-#3, pp. 623-625. [further analysis by Brainard and Martimort follows, pp. 627-630.]

 

*S.L. Brainard and D. Martimort (1997). “Strategic Trade Policy with Incompletely Informed Policymakers”. Journal of International Economics; V.42-#1/2, pp. 33-65.

 

R. Moner-Colonques (1998). “Cost Uncertainty and Trade Liberalization in International Oligopoly”. Journal of International Economics; V.45-#2, pp. 369-376.

 

*G. Maggi (1999). “Strategic Trade Policy under Incomplete Information”. International Economic Review; V.40-#3, pp. 571-594.


Topic VI. Political Economy of Trade Policy

 

See Syllabus for Political Economy Course [Here]

 

● Deriving Trade Policy Preferences

 

■ Some Theory

 

J. Bhagwati (1982). “Shifting Comparative Advantage, Protectionist Demands and Policy Response”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 153-184.

 

E. Dinopoulos (1983). “Import Competition, International Factor Mobility and Lobbying Responses”. Journal of International Economics; V.14-#?, pp. 395-410.

 

J. deMelo and S. Robinson (1982). “Trade Adjustment Policies and Income Distribution in Three Archetype Developing Economies”. Journal of Development Economics; V.10-#?, pp. 67-92.

 

R. Baldwin (1984). “Rent-Seeking and Trade Policy: An Industry Approach”. Weltwirtschaftliches Archiv; V.120-#4, pp. 662-676.

 

L. Leger (1993). “Land Rents and the Demand for Protection”. International Trade Journal; V.7-#4, pp. 435-462.

 

■ Some Empirics

 

T. Pugel and I. Walter (1985). “US Corporate Interests and the Political Economy of Trade”. Review of Economics and Statistics; V.??-#?, pp. 465-473.

 

V. Aggarwal, R. Keohane and D. Yoffie (1987). “The Dynamics of Negotiated Protection”. American Political Science Review; V.81-#2, pp. 345-366.

 

H. Milner and D. Yoffie (1989). “Between Free Trade and Protectionism: Strategic Trade Policy and a Theory of Corporate Trade Demands”. International Organization; V.43-#2, pp. 239-272.

 

S. Magee (1978). “Three Simple Tests of the Stolper-Samuelson Theorem”. in P. Oppenheimer, ed. Issues in International Economics; Stocksfield: Oriel Press, pp. 138-153.

 

D. Nelson and C. Wasley (1989). “Two is Not Enough: A Capital Market Test of 3x2 Endogenous Tariff Theory”. ms: Murphy Institute, Tulane University.

 

A. Krueger (1980). “Protectionist Pressures, Imports and Employment in the US”. Scandinavian Journal of Economics; V.??-#?, pp. 133-146.

 

I.M. Destler and J. Odell (1987). Anti-Protection: Changing Forces in US Trade Politics. Washington, DC: IIE.

 

H. Milner (1988). Resisting Protectionism: Global Industries and the Politics of International Trade. Princeton: Princeton University Press.

 

E. Balisteri (1997). “The Performance of the Heckscher-Ohlin-Vanek Model in Predicting Endogenous Trade Policy Forces at the Individual Level”. Canadian Journal of Economics; V.30-#1, pp. 1-17.

 

K. Scheve and M. Slaughter (2001). “What Determines Individual Trade Policy Preferences”. Journal of International Economics; V.54-#2, pp. 267-292.

 

K. O’Rourke and R. Sinnott (2001). “The Determinants of Individual Trade Policy Preferences: International Survey Evidence”. Brookings Trade Policy Forum 2001, forthcoming.

 

A.M. Mayda and D. Rodrik (2001). “Why Are Some People (and Countries) More Protectionist Than Others?”. ms: Kennedy School of Government.

 

● Organizing Economic Interests to Pursue Political Goals

 

P. Murrell (1981?). “Comparative Growth and Comparative Advantage: Tests of the Effects of Interest Group Behavior on Foreign Trade Patterns”. Public Choice; V.??-#?, pp. 35-53

 

D. Yoffie and S. Bergenstein (1985). “Creating Political Advantage: The Rise of the Corporate Political Entrepreneur”. California Management Review; V.28-#1, pp. 124-139.

 

G. Lehmbruch (1986). “Interest Groups, Government and the Politics of Protectionism”. Aussenwirtschaft; V.41-#2/3, pp. 273-302.

 

H.K. Hall and D. Nelson (1989). “Institutional Structure and Time Horizon in a Simple Political-Economy Model: The Lowi Effect”. International Spectator; V.24-#3/4, pp.153-173.

 

A.L. Hillman (1991). “Protection, Politics and Market Structure”. in E. Helpman and A. Razin, eds. International Trade and Trade Policy. Cambridge: MIT Press, pp. 120-140.

 

M. Herander and R. Pupp (1991). “Firm Participation in Steel Industry Lobbying”. Economic Inquiry; V.29-#?, pp. 134-147.

 

S. Lenway and D. Schuler (1991). “The Determinants of Corporate Political Involvement in Trade Protection: The Case of the Steel Industry.” in R. Baldwin, ed. Empirical Studies of Commercial Policy. Chicago: University of Chicago Press/NBER, pp. 75-105.

 

P. Midford (1993). “International Trade and Domestic Politics: Improving on Rogowski’s Model of Political Alignments”. International Organization; V.47-#?, pp. 535-564.

 

J. Alt and M. Gilligan (1994). “The Political Economy of Trading States: Factor Specificity, Collective Action Problems and Domestic Political Institutions”. Journal of Political Philosophy; V.2-#?, pp. 165-192.

 

K. Gawande (1997). “US Non-Tariff Barriers as Privately Provided Public Goods”. Journal of Public Economics; V.64-#?, pp. 61-81.

 

K. Gawande (1998). “Stigler-Olson Lobbying Behavior in Protectionist Industries: Evidence from the Lobbying Power Function”. Journal of Economic Behavior and Organization; V.35-#?, pp. 477-499.

 

Y. S. Chiu (1998). “Politics, Structure of Protection, and Welfare”. Review of International Economics; V.6-#3, pp.

 

D. Mitra (1999). “Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination”. American Economic Review; V.89-#5, pp. 1116-1134.

 

R. Damania and P.G. Fredriksson (2000). “On the Formation of Industry Lobby Groups”. Journal of Economic Behavior and Organization. V.41-#4, pp. 315-335.

 

L. Salamon and J. Siegfried (1977). “Economic Power and Political Influence: The Impact of Industry Structure on Public Policy”. American Political Science Review; V.71-#?, pp. 1026-1043.

 

E. Esty and R. Caves (1983). “Market Structure and Political Influence: New Data on Political Expenditures, Activity and Success”. Economic Inquiry; V.?-#?, pp. 24-38.

 

D. Jacobs (1988). “Corporate Economic Power and the State: A Longitudinal Assessment”. American Journal of Sociology; V.93-#4, pp. 852-881.

 

D. Clawson and A. Neustadtl (1989). “Interlocks, PACs, and Corporate Conservatism”. American Journal of Sociology; V.94-#4, pp. 749-793.

 

K. Grier, M. Munger and B. Roberts (1991). “The Industrial Organization of Corporate Political Participation”. Southern Economic Journal; V.57-#3, pp. 727-738.

 

B. Kennelly and P. Murrell (1991). “Industry Characteristics and Interest Group Formation: An Empirical Study”. Public Choice; V.70-#1, pp. 21-40.

 

L. Kristov, P. Lindert and R. McClelland (1992). “Pressure Groups and Redistribution”. Journal of Public Economics; V.48-#?, pp. 135-163.

 

T. Moe (1980). The Organization of Interests. Chicago: University of Chicago Press.

 

G.K. Wilson (1977). Unions in American National Politics. London: Macmillan.

 

G.K. Wilson (1985). Business and Politics: A Comparative Introduction. Chatham, NJ: Chatham House.

 

L. Lynn and T. McKeown (1988). Organizing Business: Trade Associations in America and Japan. Washington,DC: AEI.

 

D. Mitchell (1970). “Labor and the Tariff Question”. Industrial Relations; V.1-#3, pp. 268-276.

 

● Simple Models of Political Economic Equilibrium

 

■ Support Function Models


*A.L. Hillman (1982). “Declining Industries and Political Support Protectionist Motives”. American Economic Review; V.72-#5, pp. 1180-1187.


*J. Cassing and A.L. Hillman (1986). “Shifting Comparative Advantage and Senescent Industry Collapse”. American Economic Review; V.76-#?, pp. 516-523.


*N.V. Long and N. Vousden (1991). “Protectionist Responses and Declining Industries”. Journal of International Economics; V.30-#1/2, pp. 87-103.


*S. Wellisz and J.D. Wilson (1986). “Lobbying and Tariff Formation: A Deadweight Loss Consideration”. Journal of International Economics; V.20-#?, pp. 367-375.


R.V. Fabella (1991). “The Bias in Favor of Pro-Tariff Lobbies”. Journal of Public Economics; V.44-#1, pp. 87-93.

 

■ Voting Models


*W. Mayer (1984). “Endogenous Tariff Formation”. American Economic Review; V.74-#5, pp. 970-985.


W. Mayer and J. Li (1994). “Interest Groups, Electoral Competition, and Probabilistic Voting for Trade Policies”. Economics & Politics; V.6-#1, pp. 59-77.


W. Mayer (1998). “Trade Policy Platforms of Competing Parties: What Makes Them Different?”. Review of International Economics; V.6-#2, pp. 185-203.


C.C. Yang (1995). “Endogenous Tariff Formation under Representative Democracy: A Probabilistic Voting Model”. American Economic Review; V.85-#4, pp. 956-963.


*H.K. Hall, C. Kao, and D. Nelson (1998). “Women and Tariffs: Testing Gender Gap in a Downs-Mayer Model”. Economic Inquiry; V.36-#2, pp. 320-332.

 

■ Lobbying Models


*R. Findlay and S. Wellisz (1982). “Endogenous Tariffs, the Political Economy of Trade Restrictions and Welfare”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 223-234.


*H.K. Hall and D. Nelson (1992). “Institutional Structure in the Political Economy of Protection: Legislated versus Administered Protection”. Economics & Politics; V.4-#1, pp. 61-77.


*W. Mayer (1993). “Lobbying for Tariff Policies”. Review of International Economics; V.1-#3, pp. 221-233.

 

■ Another Lobbying Model-Grossman and Helpman


*G. Grossman and E. Helpman (1994). “Protection for Sale”. American Economic Review; V.84-#4, pp. 833-850.


A. Dixit (1996). “Special-Interest Lobbying and Endogenous Commodity Taxation”. Eastern Economic Journal; V.22-#4, pp. 375-388.


*A. Dixit, G. Grossman, and E. Helpman (1997). “Common Agency and Coordination: General Theory and Application to Tax Policy”. Journal of Political Economy; V.105-#4, pp. 752-69.


*S. Lael Brainard and Thierry Verdier (1997). “The Political Economy of Declining Industries: Senescent Industry Collapse Revisited”. Journal of International Economics; V.42-#1/2, pp. 221-237.


R. Boylan (2000). “An Optimal Auction Perspective on Lobbying”. Social Choice and Welfare; V.17-#1, pp. 55-68.


*D. Mitra (1999). “Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination”. American Economic Review; V.89-#5, pp. 1116-1134.


*P. Goldberg and G. Maggi (1999). “Protection for Sale: An Empirical Investigation”. American Economic Review; V.89-#5, pp. 1135-1155.

 

● Political -Economy Empirics (Alternative)

 

■ Ad Hoc Chicago Empirics


E. Ray (1981). “The Determinants of Tariffs and Nontariff Trade Restrictions in the US”. Journal of Political Economy; V.89-#1, pp. 105-121.


W. Dougan (1985). “Tariffs and the Economic Theory of Regulation”.Research in Law and Economics; V.6, pp. 187-210.


P. Godek (1985). “Industry Structure and Redistribution Through Trade Restrictions”. Journal of Law and Economics; V.28-#3, pp. 687-703.


R. Tyers (1990). “Implicit Policy Preferences and the Assessment of Negotiable Trade Policy Reforms”. European Economic Review; V.34-#?, pp. 1399-1426.


*D. Trefler (1993). “Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of US Import Policy”. Journal of Political Economy; V.101-#1, pp. 138-160.


*J.W. Lee and P. Swagel (1997). “Trade Barriers and Trade Flows across Countries and Industries”. Review of Economics and Statistics; V.79-#3, pp. 372-82.

 

■ Congressional Voting


R. Baldwin (1976). “The Political Economy of Postwar US Trade Policy”.NYU C.J. Devine Institute of Finance Bulletin--#4.


*C. Coughlin (1985). “Domestic Content Legislation: House Voting and the Economic Theory of Regulation”. Economic Inquiry; V.23-#?, pp. 437-448.


*J. McCarthur and S. Marks (1988). “Constituent Interest vs. Legislator Ideology: The Role of Political Opportunity Cost”. Economic Inquiry; V.26-#?, pp. 461-470.


S. Nollen and H. Iglarsh (1990). “Explanations of Protectionism in International Trade”. PC; V.66-#?, pp. 137-153.


S. Marks (1993). “Economic Interests and Voting on the Omnibus Trade Bill of 1987”. PC, V.75-#1, pp. 21-42.


K. Srinivasan (1997). “An Empirical Analysis of the Political Economy of Tariffs”. Economics & Politics; V.9-#1, pp. 55-70.


*W. Keech and K. Pak (1995). “Partisanship, Institutions, and Change in American Trade Politics”. JoP; V.57-#4, pp. 1130-1142.


*W. Hansen and T. Prusa (1997). “The Role of the Median Legislator in US Trade Policy: A Historical Analysis”. Economic Inquiry; V.35-#1, pp. 97-107.


*M. Bailey and D. Brady (1998). “Heterogeneity and Representation: The Senate and Free Trade”. American Journal of Political Science; V.42-#2, pp. 524-544.


*R. Baldwin and C. Magee (1998). “Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills”. NBER Working Paper, #6376.

 

■ Administered Protection

 

○ Presidential Preferences and Discretion


R. Baldwin (1981). “US Political Pressures Against Adjustment to Greater Imports”. in W. Hong and L. Krause, eds. Trade and Growth in the Advanced Developing Countries of the Pacific Basin. Seoul: Korea Development Institute.


F. Boadu, F. Ruppel and A. Angel (1992). “An Empirical Model of Presidential Popularity and Presidential Discretion in Trade Restrictions”. European Journal of Political Economy; V.8-#?, pp. 281-293.

 

○ The ITA's LTFV Decision


*J.M. Finger, H.K. Hall and D.R. Nelson (1982). “The Political Economy of Administered Protection”. American Economic Review; V.72-#3, pp. 452-466.


R. Baldwin and M. Moore (1992). “Political Aspects of the Administration of the Trade Remedy Law”. in R. Boltuck and R. Litan, eds. Down in the Dumps: Administration of the Unfair Trade Laws. Washington, DC: Brookings, pp. 253-280.

 

○ The ITC's Injury Decision


J. Goldstein and S. Lenway (1989). “Interests or Institutions: An Inquiry into Congressional-ITC Relations”. International Studies Quarterly; V.33-#?, pp. 303-327.


W. Hansen (1990). “The International Trade Commission and the Politics of Protection”. American Political Science Review; V.84-#1, pp. 21-46.


*R. Baldwin and J. Steagall (1991). “An Analysis of Factors Influencing ITC Decisions in Antidumping, Countervailing Duty and Safeguards Cases”. Weltwirtschaftliches Archiv; V.130-#2, pp. 290-307.


*M. Moore (1992). “Rules or Politics? An Empirical Analysis of Antidumping Decisions”. Economic Inquiry; V.30-#3, pp. 449-466.


T. Prusa (1991). “The Selection of Antidumping Cases for ITC Determination”. in R. Baldwin, ed. Empirical Studies of Commercial Policy. Chicago: University of Chicago Press/NBER, pp. 47-71.


*W. Hansen and T. Prusa (1997). “The Economics and Politics of Trade Policy: An Empirical Analysis of ITC Decision Making”. Review of International Economics; V.5-#2, pp. 230-245.

 

○ Harassment and Withdrawal: Who Files and Why?


J.M. Finger (1981). “The Industry-Country Incidence of Less-than-Fair-Value Cases in US Import Trade”. Quarterly Review of Economics and Business; V.21-#?, pp. 260-279.


*R. Staiger and F. Wolak (1994). “Measuring Industry-specific Protection: Antidumping in the US”. Brookings Papers on Economic Analysis; 1994: Microeconomics, pp. 51-118.


*R. Staiger and F. Wolak (1996). “Differences in Uses and Effects of Antidumping Law Across Import Sources”. in A. Krueger, ed. The Political Economy of American Trade Policy. Chicago: University of Chicago Press/NBER, pp. 385-415.

 

○ Comparative Analysis


P. Messerlin (1990). “The EC Antidumping Regulations: A First Economic Appraisal”. Weltwirtschaftliches Archiv; V.126-#?, pp. 562-587.


P.K.M. Thrakan (1991). “The Poltical Economy of Antidumping Undertakings in the European Communities”. European Economic Review; V.35-#?, pp. 1341-1359.


P.K.M. Tharakan and J. Waelbroeck (1994). “Antidumping and Countervailing Duty Decisions in the EC and in the US: An Experiment in Comparative Political Economy”. European Economic Review; V.38-#1, pp. 171-193.


A. Eymann and L. Schuknecht (1996). “Antidumping Policy in the European Community: Political Discretion or Technical Determination”. Economics & Politics; V.8-#2, pp. 111-131.

 

■ Macroeconomics in the Political Economy of Protection

 

○ Tariff Protection


R. Dornbusch and J. Frankel (1987). “Macroeconomics and Protection”.  in R. Stern, ed. US Trade Policies in a Changing World Economy. Cambridge: MIT.  pp. 77-130.


*G. Gardner and K. Kimbrough (1989). “The Behavior of US Tariff Rates”. American Economic Review; V.79-#1, pp. 91-110. [comment by Sadorsky, 1994, V.84-#4, pp. 1097-1103.]


*A. Bohara and W. Kaempfer (1991). “A Test of Tariff Endogeneity in the United States”. American Economic Review; V.81-#4, pp. 952-960.


A. Bohara and W. Kaempfer (1991). “Testing the Endogeneity of Tariff Policy in the US: Further Evidence”. Economics Letters; V.35-#?, pp. 311-315.


*S. Das and S.P. Das (1994). “Quantitative Assessment of Tariff Endogeneity: Interwar vs. Postwar”. Economics Letters; V.44-#?, pp. 139-146.


*M. Crucini (1994). “Sources of Variation in Real Tariff Rates: The US, 1900-1940". American Economic Review; V.84-#3, pp. 732-743.


*D. Irwin (1996). “Changes in US Tariffs: Prices or Policies?”. NBER Working Paper, # 5665.


M. Crucini and J. Kahn (1996). “Tariffs and Aggregate Economic Activity: Lessons from the Great Depression”. Journal of Monetary Economics; V.38-#?, pp. 427-467.


A. Bohara and W. Kaempfer (1992). “Endogenous Protection and Retaliation Between Canada and the US”. Economics Letters; V.38-#?, pp. 335-339.


G. Gardner, D. Slottje and K. Kimbrough (1992). “Tariff Behavior in Five European Countries”. Economics Letters; V. 39-#?, pp. 73-78.


A. Bohara and W. Kaempfer (1994). “Tariff Behavior in Five European Countries: Further Evidence”. Economics Letters; V.45-#?, pp. 213-216.


I. Henriques and P. Sadorsky (1994). “The Determinants and Persistence of Canadian Tariff Rates”. Canadian Journal of Economics; V.27-#1, pp. 112-128.


W. Thompson and L. Vescera (1992). “Growth Waves, Systemic Openness, and Protectionism”. International Organization; V.46-#2, pp. 493-532.

 

○ Administered Protection


*W. Takacs (1981). “Pressures for Protectionism: An Empirical Analysis”. Economic Inquiry; V.19-#?, pp. 687-693.


Salvatore, Dominick (1987). “Import Penetration, Exchange Rates, and Protectionism in the US”. Journal of Policy Modelling; V.9: pp. 125-141.


*C. Coughlin, J. Terza and N.A. Kahlifah (1989). “The Determinants of Escape Clause Petitions”. Review of Economics and Statistics; V.??-#?, pp. 341-347.


*M. Leidy (1997). “Macroeconomic Conditions and Pressures for Protection under Antidumping and Countervaling Duty Laws: Empirical Evidence from the US”. IMF Staff Papers; V.44-#1, pp. 132-144.

 

● Political Economy of Policy Reform

 

■ Theory


R. Fernandez and D. Rodrik (1991). “Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty”. American Economic Review; V.81-#5, pp. 1146-1155.

 

Sanjay Jain and Sharun Mukand (2003). “Redistributive Promises and the Adoption of Economic Reform”. American Economic Review, V.93-#1, pp. 256-264.

 

Antonio Ciccone (2004). “Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty–Comment”. American Economic Review; V.94-#3, pp. 785-795.

 

Mathias Dewatripont and Gerard Roland (1992). “Economic Reform and Dynamic Political Constraints”. Review of Economic Studies; V.59-#4, pp. 703-730.

 

Alberto Alessina and Allan Drazen (1991). “Why are Stabilizations Delayed?”. American Economic Review; V.81-#5, pp. 1170-1188.

 

Raul Labán and Federico Sturzenegger (1994). “Distributional Conflict, Financial Adaptation and Delayed Stabilization”. Economics & Politics; V.6-#3, pp. 257-276.


T. Groves, Y. Hong, J. McMillan and B. Naughton (1994). “Autonomy and Incentives in Chinese State Enterprises”. Quarterly Journal of Economics; V.101-#1, pp. 183-209.


D. Nelson (1999). “Problems in the Political Economy of Trade Policy Reform”. Journal of International Trade and Economic Development, 1999, V.8-#1, pp. 3-26.

 

■ Empirics

 

Stephan Haggard and Steven Webb (1993). “What Do We Know about the Political Economy of Economic Reform”. World Bank Research Observer; V.8-#2, pp. 143-168.

 

Rudiger Dornbusch and Sebastian Edwards (1990). “Macroeconomic Populism”. Journal of Development Economics; V.32-#2, pp. 247-277.

 

Jeffrey Sachs (1990). “Social Conflict and Populist Policies in Latin America”. in R. Brunetta and C. Dell'Aringa, eds. Labour Relations and Economic Performance. New York: NYU Press. in pp. 137-169.

 

Karen Remmer (1991). “The Political Impact of Economic Crisis in Latin America in the 1980s”. American Political Science Review; V.85-#3, pp. 777-800.

 

Nouriel Roubini (1991). “Economic and Political Determinants of Budget Deficits in Developing Countries”. Journal of International Money and Finance, V.10-supplement, pp. 49-72.

 

Sebastian Edwards and Guido Tabellini (1991). “Explaining Fiscal Policies and Inflation in Developing Countries”. Journal of International Money and Finance; V.10-Supplement, pp. 16-48.

 

Sebastian Edwards and Guido Tabellini (1994). “Political Instability, Political Weakness and Inflation: an Empirical Analysis”. In C. Sims, ed. Advances in Econometrics, Sixth World Congress--V.II. Cambridge: CUP, pp. 355-376.

 

Sebastian Edwards (1994). “The Political Economy of Inflation and Stabilization in Developing Countries”. Economic Development and Cultural Change; V.42-#2, pp. 235-266.

 

Andrés Velasco (1994). “The State and Economic Policy: Chile 1952-1992". in B. Bosworth, R. Dornbusch, and R. Laban, eds. The Chilean Economy: Policy Lessons and Challenges. Washington, DC: Brookings, pp. 379-429.

 

Aaron Tornell (1995). “Are Economic Crises Necessary for Trade Liberalization and Economic Reform?: The Mexican Experience”. in R. Dornbusch and S. Edwards,eds. Reform, Recovery and Growth: Latin America and the Middle East. Chicago: University of Chicago Press/NBER, pp. 53-73.

 

Barbara Geddes (1995). “The Politics of Economic Liberalization”. Latin American Research Review; V.30-#2, pp. 195-214.

 

Javier Corrales (1997/98). “Do Economic Crises Contribute to Economic Reforms? Argentina and Venezuela in the 1990s”. Political Science Quarterly; V.112-#4, pp. 617-644.

 

Allan Drazen and William Easterly (2001). “Do Crises Induce Reform? Simple Empirical Tests of the Conventional Wisdom”. Economics & Politics; V.13-#2, pp. 129-157.


Topic VII. International Trade and Trade Policy under Monopolistic Competition

 

● The Krugman Model of Monopolistic Competition

 

■ Basic Economics of Monopolistic Competition Models


*A. Dixit and J. Stiglitz (1977). “Monopolistic Competition and Optimum Product Diversity”. American Economic Review; V.67-#3, pp. 297-308.


H&K (1985), Chapter 6


Wong, Chapter 6, sections 1-4

 

■ International Trade in Monopolisitc Competition Models


H&K (1985), Chapter 7


Wong, Chapter 6, sections 5 and 6


P. Krugman (1979). “Increasing Returns, Monopolistic Competition and International Trade”. Journal of International Economics; V.9-#4, pp. 469-479. (Bhagwati)


*P. Krugman (1980). “Scale Economies, Product Differentiation and the Pattern of Trade”. American Economic Review; V.70-#5, pp. 950-959. (Grossman)


*A. Dixit and V. Norman (1980). “Product Differentiation and Intraindustry Trade”. Chapter 9, Theory of International Trade; Cambridge: CUP, pp. 265-295. (Grossman)


*E. Helpman (1981). “International Trade in the Presence of Product Differentiation, Economies of Scale and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin Approach”. Journal of International Economics; V.11-#3, pp. 305-340. (Grossman)

 

J. Jörgensen and P. Schröder (2004). “Welfare Ranking ad valorem and Specific Tariffs under Monopolistic Competition”. Canadian Journal of Economics; V.38-#1, pp. 228-241.

 

■ Trade Policy in Monopolistic Competition Models


H&K (1989), Chapter 7


*D. Gros (1987). “Protectionism in a Framework with Intra-Industry Trade: Tariffs, Quotas, Retaliation and Welfare Losses”. IMF Staff Papers; V.34-#1, pp. 86-114.


K. Suzuki (1991). “Choice Between Free Trade and Controlled Trade under Economies of Scale”. in A. Takayama, et al. eds. Trade, Policy, and International Adjustments. San Diego: Academic Press, pp. 173-192.


*A. Venables (1982). “Optimal Tariffs for Trade in Monopolistically Competitive Commodities”. Journal of International Economics; V.12-#3/4, pp. 225-241.


A. Venables (1987). “Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model”. Economic Journal; V.97-#387, pp. 700-717.


*H. Flam and E. Helpman (1987). “Industrial Policy under Monopolistic Competition”. Journal of International Economics; V.22-#1/2, pp. 79-102.


*D. Brown (1991). “Tariffs and Capacity Utilization by Monopolistically Competitive Firms”. Journal of International Economics; V.30-#3/4, pp. 371-381.

 

● Ethier's Model of Division of Labor

 

■ The Basic Division of Labor Model


H&K (1985), Chapter 11


*W. Ethier (1979). “Internationally Decreasing Costs and World Trade”. Journal of International Economics; V.9-#1, pp. 1-24.


*W. Ethier (1982). “National and International Returns to Scale in the Modern Theory of International Trade”. American Economic Review; V.72-#3, pp. 388-405. (Grossman)


*J. Markusen (1990). “Micro-foundations of External Economies”. Canadian Journal of Economics; V.23-#3, pp. 495-508.


J. Markusen (1989). “Trade in Producer Services and Other Specialized Inputs”. American Economic Review; V.79-#1, pp. 85-95.


*J. Francois and D. Nelson (2001). “A Geometry of Specialization”. Economic Journal, V.112-#481, pp. 648-677.

 

■ Commercial Policy in the Ethier Model


*J. Francois (1992). “Optimal Commercial Policy with International Returns to Scale”. Canadian Journal of Economics; V.25-#1, pp. 184-195.


J. Francois (1994). “Global Production and Trade: Factor Migration and Commercial Policy with International Scale Economies”. International Economic Review; V.35-#3, pp. 565-581.


*M. Lovely (1997). “Playing by the New Subsidy Rules: Capital Subsidies as Substitutes for Sectoral Subsidies”. Journal of International Economics; V.43-#3/4, pp. 463-482.


J. Markusen (1991). “First Mover Advantages, Blockaded Entry, and the Economics of Uneven Development”. in E. Helpman and A. Razin, eds.International Trade and Trade Policy. Cambridge: MIT Press, pp. 245-269.

 

● Empirical Research on Monopolistic Competition Models

 

■ On Gravity Models: Theoretical Foundations?

 

J. Anderson (1979). “A Theoretical Foundation for the Gravity Equation”. American Economic Review; V.69-#1, pp. 106-116.

 

J. Bergstrand (1985). “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence”. Review of Economics and Statistics; V.67-#3, pp. 474-481.

 

J. Bergstrand (1989). “The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade”. Review of Economics and Statistics; V.71-#1, pp. 143-153.

 

A. Merkies and C. van Beers (1994). “Paradigm Lost, Economics Regained: An Anatomical Lesson on the Gravity Model”. in J.W. Gunning, et al., eds. Trade, Aid and Development: Essays in Honour of Hans Linnemann. New York: St. Martin’s Press; London: Macmillan Press, pp. 50-85.

 

D. Davis (1995). “Intra-Industry Trade: A Heckscher-Ohlin-Ricardo Approach”. Journal of International Economics; V.39-#3/4, pp. 201-226.

 

A. Deardorff (1998). “Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?”. in J. Frankel, ed. The Regionalization of the World Economy. Chicago: University of Chicago Press, pp. 7-22.

 

S. Evenett and W. Keller (2002). “On Theories Explaining the Success of the Gravity Equation”. Journal of Political Economy; V110-#2, pp. 281-316.

 

■ On Gravity Models: Implementation Issues

 

M. Sanso, R. Cuairan and F. Sanz (1993). “Bilateral Trade Flows, the Gravity Equation, and Functional Form”. Review of Economics and Statistics; V.75-#2, pp. 266-275.

 

L. Mátyás (1997). “The Proper Econometric Specification of the Gravity Equation”. World Economy; V.20-#3, pp. 363-368.

 

L. Mátyás (1998). “The Gravity Model: Some Econometric Considerations”. World Economy; V.21-#3, pp. 397-401.

 

K. Kalirajan (1999). “Stochastic Varying Coefficients Gravity Model: An Application in Trade Analysis”. Journal of Applied Statistics; V.26-#2, pp. 185-193.

 

P. Egger (2000). “A Note on the Proper Econometric Specification of the Gravity Equation”. Economics Letters; V.66-#1, pp. 25-31.

 

I-Hui Cheng and Howard J. Wall (2005). “Controlling for Heterogeneity in Gravity Models of Trade”. Federal Reserve Bank of St. Louis Review; V.87-#1, pp. 49-63.

 

P. Egger and M. Pfaffermayr (2003). “The Proper Panel Econometric Specification for the Gravity Equation: A Three-way Model with Bilateral Interaction Effects”. Empirical Economics; V.28-#3, pp. 571-580.

 

B. Baltagi, P. Egger and M. Pfaffermayr (2003). “A Generalized Design for Bilateral Trade Flow Models”. Economics Letters; V.80-#?, pp. 391-397.

 

J.M.C. Santos-Silva and Silvana Tenreyro (2006). The Log of Gravity”. Review of Economics and Statistics; V.88-#4, pp. 641-658.

 

S. Baier and J. Bergstrand (2009). Bonus Vetus OLS: A Simple Method for Approximating International Trade Cost Effects Using the Gravity Equation”. Journal fo International Economics; V.77-#1, pp. 77-85.

 

A. Sen and T. Smith (1995). Gravity Models of Spatial Interaction Behavior. Heidelberg: Springer, Advances in Spatial and Network Economics series.

 

■ Evaluating Monopolistic Competition Models of Trade


H&K, chapter 8


*E. Helpman (1987). “Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries”. Journal of Japanese and International Economics; V.1-#1, pp. 62-81.


J. Bergstrand (1989). “The Generalized Gravity Equation, Monopolistic Competition, and the Factor Proportions Theory in International Trade”. Review of Economics and Statistics; V.71-#1, pp. 143-153.

 

J. Harrigan (1994). “Scale Economies and the Volume of Trade”. Review of Economics and Statistics; V76-#2, pp. 321-328.

 

*J. Harrigan (1995). “The Volume of Trade in Differentiated Intermediate Goods: Theory and Evidence”. Review of Economics and Statistics; V.77-#2, pp. 283-293.

 

*D. Hummels and J. Levinsohn (1995). “Monopolistic Competition and International Trade: Reconsidering the Evidence”. Quarterly Journal of Economics; V.110-#3, pp. 799-836.

 

P. Jensen (2000). “Analysis of Bilateral Trade Patterns with Panel Data”. Review of International Economics; V.8-#1, pp. 86-99.

 

R. Feenstra, J. Markusen, and A. Rose (2001). “Using The Gravity Model to Differentiate among Alternative Theories of Trade”. Canadian Journal of Economics; V.34-#2, pp. 430-447.

 

S. Baier and J. Bergstrand (2001). “The Growth of World Trade: Tariffs, Transport Costs, and Income Similarity”. Journal of International Economics; V.53-#1, pp. 1-27.

 

W. Antweiler and D. Trefler (2002). “Increasing Returns and All That: A View from Trade”. American Economic Review; V.92-#1, pp. 93-119.

 

J. Haveman and D. Hummels (2004). “Alternative Hypotheses and the Volume of Trade: The Gravity Equation and the Extent of Specialization”. Canadian Journal of Economics; V.37-#1, pp. 199-218.

 

Prakash Loungani, Ashoka Mody, and Assaf Razin (2002). “The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations”. Scottish Journal of Political Economy; V.49-#5, pp. 526-543.

 

E. Balistreri and R. Hillberry (2006).Trade Frictions and Welfare in the Gravity Model”. Canadian Journal of Economics; V.39-#1, pp. 247-265.


Topic VIII. Geography, Agglomeration, and International Trade

 

● The Basic Geography Model

 

P. Krugman (1998). “What's New About the New Economic Geography?”. Oxford Review of Economic Policy; V.14-#2, pp. 7-17.

 

G. Ottaviano and D. Puga (1998). “Agglomeration in the Global Economy: A Survey of the ‘New Economic Geography’”. World Economy; V.21-#6, pp. 707 -731.

 

R. Martin (1999). “The New ‘Geographical Turn’ in Economics: Some Critical Reflections”. Cambridge Journal of Economics; V.23-#1, pp. 65-91.

 

*J.P. Neary (2001). “Of Hype and Hyperbolas: Introducing the New Economic Geography”. Journal of Economic Literature; V.39-#2, pp. 536-561.

 

*K. Matsuyama (1995). “Complementarities and Cumulative Processes in Models of Monopolistic Competition”. Journal of Economic Literature; V.33-#2, pp. 701-729.

 

G. Bertola (1993). “Models of Economic Integration and Localized Growth”. in F. Torres and F. Giavazzi, eds. Adjustment and Growth in the European Monetary Union. Cambridge: CUP/CEPR, pp. 159-179.

 

M. Fujita and J.-F. Thisse (1996). “Economics of Agglomeration”. Journal of the Japanese and International Economies; V.10-#4, pp. 339-378.

 

Gianmarco I.P. Ottaviano and Jacques-François Thisse (2001). “On Economic Geography in Economic Theory: Increasing Returns and Pecuniary Externalities”. Journal of Economic Geography; V.1-#2, pp. 153-179.

 

*R. Baldwin, R. Forslid, P. Martin, G. Ottaviano and F. Robert-Nicoud (2001). “The Core-Periphery Model: Key Features and Effects”. Ms: GIIS.

 

*P. Krugman (1991). “Increasing Returns and Economic Geography”. Journal of Political Economy; V.99-#3, pp. 483-499.

 

P. Krugman (1991). “History versus Expectations”. Quarterly Journal of Economics; V.106-#2, pp. 651-667.

 

K. Matsuyama (1993). “Modelling Complementarity in Monopolistic Competition”. Bank of Japan Monetary and Economic Studies; V.11-#1, pp. 87-109.

 

K. Matsuyama (1997). “Complementarity, Instability and Multiplicity”. Japanese Economic Review; V.48-#3, pp. 240-66.

 

J. Rauch (1993). “Does History Matter Only When it Matters Little? The Case of City-Industry Location”. Quarterly Journal of Economics; V.108-#3, pp. 843-867

 

D. Frankel and A. Pauzner (2000). “Resolving Indeterminacy in Dynamic Settings: The Role of Shocks”. Quarterly Journal of Economics; V.115-#1, pp. 285-304.

 

B. Herrendorf, R. Waldmann, and Á. Valentinyi (2000). “Ruling Out Multiplicity and Indeterminacy: The Role of Heterogeneity”. Review of Economic Studies; V.67-#2, pp. 295 -307.

 

P.-P. Combes (1997). “Industrial Agglomeration under Cournot Competition”. Annales d'Economie et de Statistique; #45, pp. 161-182.

 

E. Helpman (1998). “The Size of Regions”. in D. Pines, E. Sadka, and I. Zilcha, eds. Topics in Public Economics. Cambridge: Cambridge University Press, pp. 33-54.

 

G. Ottaviano (1999). “Integration, Geography and the Burden of History”. Regional Science and Urban Economics; V.29-#2, pp. 245-256.

 

R. Baldwin (1999). “Agglomeration and Endogenous Capital”. European Economic Review; V.43-#2, pp. 253-280.

 

Philippe Martin,and Gianmarco Ottaviano (1999). “Growing Locations: Industry Location in a Model of Endogenous Growth”. European Economic Review; V.43-#2, pp. 281-302.

 

R. Baldwin (2001). “The Core-Periphery Model with Forward Looking Expectation”. Regional Science and Urban Economics; V.31-#1, pp. 21-49.

 

P. Krugman (1991). Geography and Trade. Cambridge: MIT Press.

 

P. Krugman (1996). The Self-Organizing Economy. Oxford: Blackwell.

 

M. Fujita, P. Krugman, and A. Venables (1999). The Spatial Economy: Cities, Regions, and International Trade. Cambridge: MIT Press.

 

S. Brakman, H. Garretsen and C. Van Marrewijk (2001). An Introduction to Geographical Economics. Cambridge: CUP.

 

M. Fujita and J.-F. Thisse (2002). The Economics of Agglomeration: Cities, Industrial Location, and Regional Growth. Cambridge: CUP.

 

R. Baldwin, R. Forslid, P. Martin, G. Ottaviano, and F. Robert-Nicoud (2003). Economic Geography and Public Policy. Princeton: Princeton University Press.

 

● International Trade and Agglomeration

 

■ Theoretical Analysis

 

P. Krugman and A. Venables (1990). “Integration and the Competitiveness of a Peripheral Industry”. in C. Bliss and J. Braga de Macedo, eds. Unity with Diversity in the European Economy: The Community's Southern Frontier. Cambridge: CUP, pp. 56-75.

 

J. Markusen (1991). “First Mover Advantages, Blockaded Entry, and the Economics of Uneven Development”. in E. Helpman and A. Razin, eds. International Trade and Trade Policy. Cambridge: MIT Press, pp. 245-269.

 

P. Krugman (1995). “Complexity and Emergent Structure in the International Economy”. In J. Levinsohn, A. Deardorff, and R. Stern, eds. New Directions in Trade Theory. Ann Arbor: Univeristy of Michigan Press, pp. 23-46. [comments by Dixit and Matsuyama follow]

 

*P. Krugman and A. Venables (1995). “Globalisation and the Inequality of Nations”. Quarterly Journal of Economics; V.110-#4, pp. 857-880.

 

Paul Krugman and Raul Livas Elizondo (1996). “Trade Policy and the Third World Metropolis”. Journal of Development Economics; V.49-#1, pp. 137-150.

 

*A. Venables (1996). “Equilibrium Location of Vertically Linked Industries”. International Economic Review; V.37-#2, pp. 341-358.

 

D. Puga and A. Venables (1996). “The Spread of Industry: Spatial Agglomeration in Economic Development”. Journal of the Japanese and International Economies; V.10-#4, pp. 440-464.

 

*D. Rodrik (1996). “Coordination Failures and Government Policy: A Model with Applications to East Asia”. Journal of International Economics; V.40-#1/2, pp. 1-22.

 

*A. Rodríguez-Clare (1996). “The Division of Labor and Economic Development”. Journal of Development Economics; V.49-#1, pp. 3-32.

 

K. Matsuyama (1996). “Why are There Rich and Poor Countries? Symmetry-Breaking in the World Economy”. Journal of the Japanese and International Economies; V.10-#4, pp. 419-439.

 

A. Venables and P. Krugman (1996). “Integration, Specialization, and Adjustment”. European Economic Review; V.40-#3/5, pp. 959-967.

 

D. Puga and A. Venables (1997). “Preferential Trading Arrangements and Industrial Location”. Journal of International Economics; V.43-#3/4, pp. 347-368.

 

D. Puga and A. Venables (1999). “Agglomeration and Economic Development: Import Substitution vs. Trade Liberalisation”. Economic Journal; V.109-#455, pp. 292-311.

 

D. Puga (1999). “The Rise and Fall of Regional Inequalities”. European Economic Review; V.43-#2, pp. 303-334.

 

L.A. Ricci (1999). “Economic Geography and Comparative Advantage: Agglomeration versus Specialization”. European Economic Review; V.43-#2, pp. 357-377.

 

K.H. Midelfart Knarvik and J. Tvedt (2000). “International Trade, Technological Development, and Agglomeration”. Review of International Economics; V.8-#1, pp. 149-163.

 

G. Ottaviano (2001). “Monopolistic Competition, Trade, and Endogenous Spatial Fluctuations”. Regional Science and Urban Economics; V.31-#1, pp. 51-77.

 

R. Ludema and I. Wooton (2000). “Economic Geography and the Fiscal Effects of Regional Integration”. Journal of International Economics; V.52-#2, pp.n 331-357.

 

G. Ottaviano, T. Tabuchi, and J.-F. Thisse (2002). “Agglomeration and Trade Revisited”. International Economic Review; V.43-#2, pp. 409-436.

 

A. Venables and N. Limão (2002). “Geographical Disadvantage: A Heckscher-Ohlin-von Thünen Model of International Specialization”. Journal of International Economics; V.58-#2, pp. 239-263.

 

■ Empirical Analysis

 

○ Overviews

 

M. Amiti (1998). “New Trade Theories and Industrial Location in the EU: A Survey of Evidence”. Oxford Review of Economic Policy; V.14-#2, pp. 45-53.

 

M. Brülhart (1998). “Economic Geography, Industry Location and Trade: The Evidence”. World Economy; V.21-#6, pp. 775 -801.

 

G. Hanson (2000). “Firms, Workers, and the Geographic Concentration of Economic Activity”. in Gordon L. Clark, Meric Gertler, and Maryann Feldman, eds., Handbook of Economic Geography. New York: Oxford University Press, pp. 477-496 .

 

G. Hanson (2001). “Scale Economies and the Geographic Concentration of Industry”. Journal of Economic Geography, V.1-#3, pp. 255-276.

 

H. Overman, S. Redding and A. Venables (2001). “The Economic Geography of Trade, Production and Income: A Survey of Empirics”. In E.K. Choi and J. Harrigan, eds. Handbook of International Trade. Oxford: Blackwell, pp. 354-387.

 

K. Head and T. Mayer (2004). “The Empirics of Agglomeration and Trade”. In J. V. Henderson and J.-F. Thisse, eds. Handbook of Regional and Urban Economics--V.4. Amsterdam: Elsevier, pp. 2609-2669.

 

○ Economic Geography and Specialization

 

D. Davis, D. Weinstein, S. Bradford, and K. Shimpo (1997). “Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works”. American Economic Review; V.87-#3, pp. 420-446.

 

E. Lundbäck and J. Torstensson (1998). “Demand, Comparative Advantage, and Economic Geography in International Trade: Evidence from the OECD”. Weltwirtschaftliches Archiv; V.134-#2, pp. 230-249.

 

D. Davis and D. Weinstein (1997). “Does Economic Geography Matter for International Specialization”. NBER Working Paper, #5706.

 

D. Davis and D. Weinstein (1999). “Economic Geography and Regional Production Structure: An Empirical Investigation”. European Economic Review; V.43-#2, pp. 379-407.

 

P. Smith (1999). “Do Geographic Scale Economies Explain Disturbances to Heckscher-Ohlin Trade?”. Review of International Economics; V.7-#1, pp. 20-36.

 

K. Head and J. Ries (2001). “Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade”. American Economic Review; V.91-#4, pp. 858-876.

 

Nuno Limão and Anthony Venables (2001). “Infrastructure, Geographical Disadvantage, Transport Costs, and Trade”. World Bank Economic Review; V.15-#3, pp. 451-479.

 

D. Davis and D. Weinstein (2002). “Bones, Bombs, and Break Points: The Geography of Economic Activity”. American Economic Review; V.92-#5, pp. 1269-1289.

 

*D. Davis and D. Weinstein (2003). “Market Access, Economic Geography and Comparative Advantage: An Empirical Assessment”. Journal of International Economics, V.59-#1, pp. 1-23.

 

S. Brakman, H. Garretsen and M. Schramm (2004). “The Strategic Bombing of German Cities During World War II and Its Impact on City Growth”. Journal of Economic Geography; V.4-#2, pp. 201-218.

 

N. Wolff (2007). “Endowments vs. Market Potential: What Explains the Relocation of Industry After the Polish Reuification in 1918?”. Explorations in Economic History; V.44-#1, pp. 22-42.

 

*S. Redding and D. Sturm (2008). “The Costs of Remoteness: Evidence from German Division and Reunification”. American Economic Review; V.98-#5, pp. 1766-1797.

 

○ Home Market Effects

 

J. McCallum (1995). “National Borders Matter: Canada-US Regional Trade Patterns”. American Economic Review; V.85-#3, pp. 615-623.

 

C. Engel and J. Rogers (1996). “How Wide is the Border?”. American Economic Review; V.86-#5, pp. 1112-1125.

 

J. Helliwell (1996). “Do National Borders Matter for Quebec’s Trade?”. Canadian Journal of Economics; V.29-#3, pp. 507-522.

 

D. Davis (1998). “The Home Market, Trade, and Industrial Structure”. American Economic Review; V.88-#5, pp. 1264-1276.

 

F. Trionfetti (2001). “Using Home Biased Demand to Test Trade Theories”. Weltwirtschaftliches Archiv; V.137-#3, pp. 404-426.

 

H. Wolf (2000). “Intranational Home Bias in Trade”. Review of Economics and Statistics; V.82-#4, pp. 555-563.

 

K. Head, T. Mayer and J. Ries (2002). “On the Pervasiveness of Home Bias”. Economica; V.69-#275, pp. 371-390.

 

Janet Ceglowski (2001). “Has the Border Narrowed?”. North American Journal of Economics and Finance; V.11-#1, pp. 61-75.

 

Robert Feenstra (2002). “Border Effects and the Gravity Equation: Consistent Methods for Estimation”. Scottish Journal of Political Economy; V.49-#5, pp. 491-506.

 

J. Helliwell (2002). “Measuring the Width of National Borders”. Review of International Economics; V.10-#3, pp. 517-524.

 

J. Anderson and D. Marcouiller (2002). “Insecurity and the Pattern of Trade: An Empirical Investigation”. Review of Economics and Statistics; V.84-#2, pp. 345-352.

 

J. Anderson and E. van Wincoop (2002). “Borders, Trade, and Welfare”. S. Collins and D. Rodrik, eds. Brookings Trade Forum–2001. Washington, DC: Brookings Institution, pp. 207-243. [Comments by C. Engel and C. Freund]

 

J. Anderson and E. van Wincoop (2003). “Gravity with Gravitas: A Solution to the Border Puzzle”. American Economic Review; V.93-#1, pp. 170-192.

 

C. Evans (2003). “The Economic Significance of National Border Effects”. American Economic Review; V.93-#4, pp. 1291-1312.

 

C. Evans (2006). Border Effects and the Availability of Domestic Products Abroad”. Canadian Journal of Economics; V.39-#1, pp. 211-246.

 

J. Ceglowski (2006). Is the Border Really that Wide?”. Review of International Economics; V.14-#3, pp. 392-413.

 

L. Fontagné, T. Mayer, and S. Zignago (2005). Trade in the Triad: How Easy is Access to Large Markets?”. Canadian Journal of Economics; V.38-#4, pp. 1401-1430.

 

H. Wall (2000). “Gravity Model Specification and the Effects of the Canada-US Border”. Federal Reserve Bank of St. Louis Working Paper, #2000/024A.

 

Serge Coulombe (2004). “Intranational Trade Diversion, the Canada–United States Free Trade Agreement, and the L Curve”; Topics in Economic Analysis & Policy: Vol. 4: No. 1, Article 16.

 

Matthieu Crozet andFederico Trionfetti (2008). Trade Costs and the Home Market Effect”. Journal of International Economics; V.76-#2, pp. 309-321.

 

K. Lewis (1999). “Trying to Explain Home Bias in Equities and Consumption”. Journal of Economic Literature; V.37-#2, pp. 571-608.

 

○ Agglomeration

 

*S. Kim (1995). “Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in United States Regional Manufacturing Structure, 1860-1987”. Quarterly Journal of Economics; V.110-#4, pp. 881-908.

 

S. Kim (1999). “Regions, Resources, and Economic Geography: Sources of U.S. Regional Comparative Advantage, 1880-1987”. Regional Science and Urban Economics; V.29-#1, pp. 1-32.

 

A. Ciccone and R. Hall (1996). “Productivity and the Density of Economic Activity”. American Economic Review; V.86-#1, pp. 54-70.

 

J.V. Henderson (1997). “Externalities and Industrial Development”. Journal of Urban Economics; V.42-#3, pp. 449-470.

 

G. Ellison and E. Glaeser (1997). “Geographic Concentration in US Manufacturing Industries: A Dartboard Approach”. Journal of Political Economy; V.105-#5, pp. 889-927.

 

G. Dumais, G. Ellison, and E. Glaeser (2002). “Geographic Concentration as a Dynamic Process”. Review of Economics and Statistics; V.84-#2, pp. 193-204. [NBER Working Paper, #6270].

 

R. Dekle (2002). “Industrial Concentration and Regional Growth: Evidence from the Prefectures”. Review of Economics and Statistics; V.84-#2, pp. 310-315.

 

M. Devereux, R. Griffith, and H. Simpson (1999). “The Geographic Distribution of Productive Activity in the UK”. IFS Working Paper; #W99/26.

 

J.V. Henderson (1999). “Marshall’s Scale Economies”. Journal of Urban Economics; forth. [NBER Working Paper, #7358.]

 

P.-P. Combes (2001). “Marshall-Arrow-Romer Externalities and City Growth”. CERAS working paper, #99-06.

 

S. De Nardis, A. Goglio, and M. Malgarini (1996). “Regional Specialization and Shocks in Europe: Some Evidence from Regional Data”. Weltwirtschaftliches Archiv; V.132-#2, pp. 197-214.

 

G. Hanson (1998). “North American economic integration and industry location”. Oxford Review of Economic Policy; V.14-#2, pp. 30-44.

 

K.-H. Knarvik and F. Steen (1999). “Self-Reinforcing Agglomerations? An Empirical Industry Study”. Scandinavian Journal of Economics; V.101-#4, pp. 515-532.

 

*M. Amiti (1999). “Specialization Patterns in Europe”. Weltwirtschaftliches Archiv; V.135-#4, pp. 573-593.

 

*M. Brülhart (2001). “Evolving Geographical Concentration of European Manufacturing Industries”. Weltwirtschaftliches Archiv; V.137-#2, pp. 215-243.

 

M. Brülhart (2001). “Growing Alike or Growing Apart? Industrial Specialisation of EU Countries”. in Charles Wyplosz (ed.) The Impact of EMU on Europe and the Developing Countries. Oxford: Oxford University Press.

 

M. Storper, Y.-c. Chen, and D. De Paolis (2002). “Trade and Location of Industries in the OECD and European Union”. Journal of Economic Geography; V.2-#1, pp. 73-107.

 

Keith Head, Jojn Ries, and Deborah Swenson (1995). “Agglomeration Benefits and Location Choice: Evidence from Japanese Manufacturing Investments in the United States”. Journal of International Economics; V.38-#3/4, pp. 223-247.

 

Keith Head, Jojn Ries, and Deborah Swenson (1999). “Attracting Foreign Manufacturing: Investment Promotion and Agglomeration”. Regional Science and Urban Economics; V.29-#2, pp. 197-218.

 

D. Jianping (1999). “Agglomeration Effects in Manufacturing Location--Are There Any Country's Preferences?”. Economia Internazionale; V.52-#1, pp. 59-78.

 

J.J. de Lucio, J. Herce, and A. Goicolea (2002). “The Effects of Externalities on Productivity Growth in Spanish Industry”. Regional Science and Urban Economics; V.32-#2, pp. 241-258.

 

E. Tomiura (2003). “Changing Economic Geography and Vertical Linkages in Japan”. Journal of the Japanese and International Economies; V.17-#4, pp. 561-581.

 

G. Hanson (2005). Market Potential, Increasing Returns and Geography Concentration”. Journal of International Economics; V.67-#1, pp. 1-24.

 

Rikard Forslid, Jan Haaland, Karen Helene Midelfart Knarvik (2002). “A U-shaped Europe?”. Journal of International Economics; V.57-#2, pp. 273-297.

 

Overman, H. And D. Puga (2002). “Unemployment clusters across Europe’s regions and countries”. Economic Policy; V.17-#34, pp. 115-147.

 

J. Haaland, J. Kind, K.H. Midelfart-Knarvik, and J. Torstensson (1999). “What Determines the Economic Geography of Europe?”. CEPR Discussion Paper; #2072.

 

K.H. Midelfart-Knarvik, H. Overman, S. Redding and A. Venables (2000). “The Location of European Industry”; Economic Papers no. 142, European Commission, D-G for Economic and Financial Affairs, Brussels.

 

K.H. Midelfart-Knarvik, H. Overman, and A. Venables (2001). “Comparative Advantage and Economic Geography: Estimating the Determinants of Industrial Location in the EU”; CEPR Discussion Paper; #20618.

 

K.H. Midelfart-Knarvik, H. Overman, S. Redding and A. Venables (2001). “Integration and Industrial Specialisation in the European Union”. Revue Economique; V.53-#3, pp. 469-81.

 

P.P. Combes and M. Lafourcade (2001). “Transportation Costs Decline and Regional Inequalities: Evidence from France”. CERAS working paper, #01-01.

 

G. Duranton and H. Overman (2001). “Localisation in UK Manufacturing Industries: Assessing Non-Randomness using Micro-Geographic Data”. Ms: LSE.

 

S. Redding (2002). “Specialization Dynamics”. Journal of International Economics, V.58-#2, pp. 299-334.

 

S. Redding and A. Venables (2002). “The Economics of Isolation and Distance”. Nordic Journal of Political Economy (Conference Volume), pp. 93-108.

 

S. Redding and A.Venables (2004). “Economic Geography and International Inequality”. Journal of International Economics; V.62-#1, pp. 53-82.

 

S. Redding and A.Venables (2003). “Geography and Export Performance: External Market Access and Internal Supply Capacity”. In R. Baldwin and L.A. Winters, eds. Challenges to Globalization. Chicago: University of Chicago Press/NBER, pp.

 

S. Redding and A. Venables (2002). “South-East Asian Export Performance: External Market Access and Internal Supply Capacity”. Journal of the Japanese and International Economies; V.17-#4, pp. 404-431.

 

○ Regional Convergence/Divergence

 

R. Barro and X. Sala-i-Martin (1991). “Convergence Across States and Regions”. Brookings Papers on Economics Activity; #1, pp. 107-158. [comments]

 

R. Barro and X. Sala-i-Martin (1992). “Convergence”. Journal of Political Economy; V.100-#2, pp. 233-251.

 

G. Carlino and L. Mills (1993). “Are US Regional Incomes Converging?”. Journal of Monetary Economics; V.32-#2, pp. 335-346.

 

M. Loewy and D. Papell (1996). “Are US Regional Incomes Converging? Some Further Evidence”. Journal of Monetary Economics; V.38-#?, pp. 587-598. [response by Carlino and Mills follows]

 

G. Carlino and L. Mills (1996). “Testing Neoclassical Convergence in Regional Incomes and Earnings”. Regional Science and Urban Economics; V.26-#6, pp. 565-590.

 

J. Bishop, J. Formby and P. Thistle (1994). “Convergence and Distribution of Regional Income Distributions and Welfare”. Review of Economics and Statistics; V.76-#2, pp. 228-235.

 

E. Glaeser, J. Scheinkman, and A. Shleifer (1995). “Economic Growth in a Cross Section of Cities”. Journal of Monetary Economics; V.36-#1, pp. 117-143.

 

P. Evans and G. Karras (1996). “Do Economies Converge?: Evidence from a Panel of US States”. Review of Economics and Statistics; V.78-#3, pp. 384-388.

 

A. Bernard and C. Jones (1996). “Productivity and Convergence Across U.S. States and Industries”. Empirical Economics; V.21-#1, pp. 113-135.

 

S. Kim (1998). “Economic Integration and Convergence: U.S. Regions, 1840-1987”. Journal of Economic History; V.58-#3, pp. 659-683. [errata V.58-#4, pg. 1118; comment by S. LaCroix and response, V.59-#3, pp. 773-786]

 

-M. Tomljanovich and T. Vogelsang (2002). “Are U.S. Regions Converging? Using New Econometric Methods To Examine Old Issues”. Empirical Economics; V.27-#1, pp. 49-62.

 

Gasper Garofalo and Steven Yamarik (2002). “Regional Convergence: Evidence from a New State-by-State Capital Stock Series”. Review of Economics and Statistics; V.84-#1, pp. 316-323.

 

P. Krugman (1993). “Lessons of Massachusetts for EMU”. in F. Torres and F. Giavazzi, eds. Adjustment and Growth in the European Monetary Union. Cambridge: CUP/CEPR, pp. 241-261.

 

L. Mauro and E. Podrecca (1994). “The Case of Italian Regions: Convergence or Dualism?”. Economic Notes; V.24-#3, pp. 447-472.

 

D. Neven and C. Gouyette (1995). “Regional Convergence in the European Community”. Journal of Common Market Studies; V.33-#?, pp. 47-65.

 

R. Helg, P. Manasse, T. Monacelli, and R. Rovelli (1995). “How Much (A)symmetry in Europe? Evidence from Industrial Sectors”. European Economic Review; V.39-#?, pp. 1017-1041.

 

*D. Quah (1996). “Regional Convergence Clusters Across Europe”. European Economic Review; V.40-#3-5, pp. 951-958.

 

J. Fagerberg and B. Verspagen (1996). “Heading for Divergence? Regional Growth in Europe Reconsidered”. Journal of Common Market Studies; V.34-#3, pp. 431-448.

 

S. Magrini (1999). “The Evolution of Income Disparities Among the Regions of the European Union”. Regional Science and Urban Economics; V.29-#?, pp. 257-281.

 

*J. Esteban (2000). “Regional Convergence in Europe and the Industry Mix: A Shift-share Analysis”. Regional Science and Urban Economics; V.30-#3, pp. 353-364.

 

R. Carlsen (2000). “Testing Equilibrium Models of Regional Disparities”. Scottish Journal of Political Economy; V.47-#1, pp. 1-24.

 

E. Tsionas (2000). “Real Convergence in Europe: How Robust are Econometric Inferences”. Applied Economics; V.32-#?, pp. 1475-1482.

 

M. Brülhart and F. Trionfetti (2001). “Industrial Structure and Public Procurement: Theory and Empirical Evidence”. Journal of Economic Integration; V.16-#1, pp. 106-127.

 

Ron Martin (2001). “EMU versus The Regions? Regional Convergence and Divergence in Euroland”. Journal of Economic Geography; V.1-#1, pp. 51-80.


Topic IX. Trade, Growth and Development

 

● Growth and Trade-Some (Very) Simple Analytics

 

■ Simple static approach to growth, 1: Factor Accumulation


T.N. Rybczynski (1955). “Factor Endowments and Relative Commodity Prices”. Economica; V.22-#88, pp. 336-341.


W.M. Corden (1956). “Economic Expansion and International Trade: A Geometric Approach”. Oxford Economic Paper; V.8-#?, pp. 223-228.

 

J. Bhagwati (1958). “Immiserizing Growth: A Geometrical Note”. Review of Economic Studies; V.25-#3, pp. 201-205.


V.K. Ramaswami (1960). “The Effects of Accumulation on the Terms of Trade”. Economic Journal; V.70-#279, pp. 514-518.


A. Guha (1963). “Factor and Commodity Prices in an Expanding Economy”. Quarterly Journal of Economics; V.77-#1, pp. 145-155.

 

■ Optimal growth with trade


*BPS, Chapter 36.


R. Findlay (1984). “Growth and Development in Trade Models”. in R. Jones and P. Kenen, Handbook of International Economics, V.I. Amsterdam: North-Holland, pp. 185-236.


B. Jensen and C. Wang (1997). “General Equilibrium Dynamics of Basic Trade Models for Growing Economies”. in B. Jensen and K.-y. Wong, eds. Dynamics, Economic Growth, and International Trade. Ann Arbor: University of Michigan Press, pp. 77-126.


*H. Atsumi (1971). “The Long Run Offer Function and A Dynamic Theory of International Trade”. Journal of International Economics; V.1-#3, pp. 267-299.


*A. Deardorff (1973). “The Gains from Trade In and Out of Steady State”. Oxford Economic Papers; V.25-#?, pp. 173-191.


*A. Deardorff (1974). “A Geometry of Growth and Trade”. Canadian Journal of Economics; V.7-#2, pp. 295-306.


*A. Deardorff (2001). “Rich and Poor Countries in Neoclassical Trade and Growth”. Economic Journal; V.111-#470, pp. 277-294.


R. Baldwin (1975). “International Trade and Economic Growth: A Diagrammatic Analysis”. American Economic Review; V.65-#1, pp. 187-193.


A. Smith (1977). “Capital Accumulation in the Open, Two-Sector Economy”. Economic Journal; V.87-#346, pp. 273-282.


*R. Manning and J. Markusen (1991). “National Product Functions in Comparative Steady-State Analysis”. International Economic Review; V.32-#3, pp. 613-624.

 

■ Simple static approach to growth, 2: Technology Change

 

J. Hicks (1953). “An Inaugural Lecture”. Oxford Economic Papers; V.5-#2, pp. 117-135.


*H.G. Johnson (1959). “Economic Development and International Trade”. Nationaløkonomisk Tidsskrift; V.97-#5/6, pp. 253-272.


*M. Ikema (1969). “The Effect of Economic Growth on the Demand for Imports”. Oxford Economic Papers; V.21-#1, pp. 66-69.

 

*R. Findlay and H. Grubert (1959). “Factor Intensities, Technological Progress, and the Terms of Trade”. Oxford Economic Papers; V.11-#1, pp. 111-121.

 

R. Jones (1970). “The Role of Technology in the Theory of International Trade”. in R. Vernon, ed. The Technology Factor in International Trade. New York: Columbia University Press/NBER, pp. 73-92.

 

J. Borkakoti (1980). “Generalized Findlay-Grubert Theorems”. Quarterly Journal of Economics; V.95-#4, pp. 587-611.

 

J.P. Neary (1981). “On the Short-Run Effects of Technological Progress”. Oxford Economic Papers; V.33-#2, pp. 224-233.

 

W.E. Diewert (1987). “The Effects of an Innovation: A Trade Theory Approach”. Canadian Journal of Economics; V.20-#4, pp. 694-714.

 

J. Chipman (1970). “Induced Technical Change and Patterns of International Trade”. in R. Vernon, ed. The Technology Factor in International Trade. New York: Columbia University Press/NBER, pp. 94-127.

 

■ Endogenous growth with trade


*BPS, Chapter 37.


G. Grossman and E. Helpman (1995). “Technology and Trade”. in G. Grossman and K. Rogoff, eds. Handbook of International Economics, V.III. Amsterdam: Elsevier, pp. 1279-1337.


M. Obstfeld and K. Rogoff (1996). “Global Linkages and Economic Growth”. Chapter 7 of Foundations of International Macroeconomics. Cambridge: MIT Press, pp. 429-512.


N.V. Long and K.-y. Wong (1997). “Endogenous Growth and International Trade: A Survey”. in B. Jensen and K.-y. Wong, eds. Dynamics, Economic Growth, and International Trade. Ann Arbor: University of Michigan Press, pp. 11-74.

 

○ Learning by doing models with trade


A. Young (1991). “Learning by Doing and the Dynamic Effects of International Trade”. Quarterly Journal of Economics; V.106-#2, pp. 369-405.


J. Ishikawa (1992). “Learning by Doing, Changes in Industrial Structure and Trade Patterns, and Economic Growth in a Small Open Economy”. Journal of International Economics, V.33-#3/4, pp. 221-244.


V. Dehejia (1993). “Optimal Endogenous Growth in a Two-Sector Model with Learning-by-Doing and Spillovers”. Journal of Economic Integration; V.8-#1, pp. 100-115.

 

○ Human Capital, Growth, and Trade: The Lucas-Romer Model


I. Wooton (1991). “Capital, Skills, and International Trade”. Canadian Journal of Economics; V.24-#2, pp. 372-390.


N. Stokey (1991). “Human Capital, Product Quality and Growth”. Quarterly Journal of Economics; V.106-#2, pp. 587-616.


J. Rauch (1991). “Reconciling the Pattern of Trade with the Pattern of Migration”. American Economic Review; V.81-#4, pp. 774-796.


N. Stokey (1996). “Free Trade, Factor Returns, and Factor Accumulation”. Journal of Economic Growth; V.1-#4, pp. 421-447.


F. Cartiglia (1997). “Credit Constraints and Human Capital Accumulation in the Open Economy”. Journal of International Economics; V.43-#1/2, pp. 221-236.


R. Harris (1996). “Human Capital and Measurable Dynamic Gains from Economic Integration”. Empirical Economics; V.21-#1, pp. 45-75.


T. Osang and A. Pereira (1997). “Foreign Growth and Domestic Performance in a Small Open Economy”. Journal of International Economics; V.43-#3/4, pp. 499-512.


T. Osang and A. Pereira (1997). “Savings, Volume of Trade, and Growth”. Review of International Economics; V.5-#3, pp. 310-323.


J. Durkin (1997). “Perfect Competition and Endogenous Comparative Advantage”. Review of International Economics; V.5-#3, pp. 401-411.

 

○ Division of Labor, Growth and Trade: The Dynamic Ethier Model


*G. Grossman and E. Helpman (1990). “Comparative Advantage and Long-Run Growth”. American Economic Review; V.80-#4, pp. 796-815.


G. Grossman and E. Helpman (1991). “Growth and Welfare in a Small Open Economy”. in E. Helpman and A. Razin, eds. International Trade and Trade Policy. Cambridge: MIT Press, pp. 141-163.


*R. Feenstra (1996). “Trade and Uneven Growth”. Journal of Development Economics; V.49-#1, pp. 229-256.


L. Cheng and E. Dinopoulos (1992). “Schumpeterian Growth and International Business Cycles”. American Economic Review; V.82-#2, pp. 409-414.


P. Krugman and A. Venables (1995). “Globalisation and the Inequality of Nations”. Quarterly Journal of Economics; V.110-#4, pp. 857-880.


E. Dinopoulos and C. Syropoulos (1997). “Tariffs and Schumpeterian Growth”. Journal of International Economics; V.42-#3/4, pp. 425-452.


*K. Matsuyama (1996). “Why are there Rich and Poor Countries? Symmetry Breaking in the World Economy”. Journal of the Japanese and International Economies; V.10-#4, pp. 419-439.

 

● Empirics of Trade and Growth

 

■ Cross-Section Analysis

 

○ Bivariate regression analysis


M. Michaely (1977). “Exports and Growth: An Empirical Investigation”. Journal of Development Economics; V.4-#1, pp. 49-53.


P. Heller and R. Porter (1978). “Exports and Growth: An Empirical Reinvestigation”. Journal of Development Economics; V.5-#2, 191-193.


J. Poon (1994). “Effects of World Demand and Competitiveness on Exports and Economic Growth”. Growth and Change; V.25-#?, pp. 3-24.


R. Sundrum (1994). “Exports and Economic Growth”. in G. Meier, ed. From Classical Economics to Development Economics. New York: St. Martins, pp. 104-120.


*J. Frankel and D. Romer (1999). “Does Trade Cause Growth”. American Economic Review; V.89-#3, pp. 379-399.

 

○ One-Sector Production Function Analysis


*B. Balassa (1978). “Exports and Economic Growth: Further Evidence” Journal of Development Economics; V.5-#2, pp. 181-189.


W. Tyler (1981). “Growth and Export Expansion in Developing Countries” Journal of Development Economics; V.9-#3, pp. 121-130.


*R. Ram (1985). “Exports and Economic Growth: Some Additional Evidence”. Economic Development and Cultural Change; V.33-#2, pp. 415-425.


D. Moschos (1989). “Export Expansion, Growth and Level of Economic Development”. Journal of Development Economics; V.30-#1, pp. 93-102.

 

○ Two-Sector Production Function Analysis


*G. Feder (1982). “On Exports and Economic Growth”. Journal of Development Economics; V.12-#?, pp. 59-73.


*R. Kavoussi (1984). “Export Expansion and Economic Growth: Further Empirical Evidence”. Journal of Development Economics; V.14-#1/2, pp. 241-250.


*H. Esfahani (1991). “Exports, Imports and Economic Growth in Semi-Industrialized Economies”. Journal of Development Economics; V.35-#1, pp. 93-116.


E.J. Sheehey (1991). “Exports and Growth: A Flawed Framework”. Journal of Development Studies; V.27-#1, pp. 111-116.


*R. Baldwin and E. Seghezza (1996). “Testing for Trade-Induced Investment-Led Growth”. NBER Working Paper # 5416.

 

■ Time Series Analysis

 

○ LDCs


*W.S. Jung and P.J. Marshall (1985). “Exports, Growth and Causality in Developing Countries”. Journal of Development Economics; V.18-#2, pp. 1-12.


P. Chow (1987). “Causality Between Exports, Growth and Industrial Development: Empirical Evidence from the NICs”. Journal of Development Economics; V.26-#?, pp. 55-63. [comment by P. Sephton and response, 1989, V.31-#2, pp. pp. 413-417.


M.W. Hsiao (1987). “Tests of Causality and Exogeneity between Exports and Economic Growth: The Case of the Asian NICs”. Journal of Economic Development; V.12-#2, pp. 143-159.


M. Bahmani-Oskooee, H. Montandi, and G. Shabsigh (1991). “Exports, Growth and Causality in LDCs: A Re-examination”. Journal of Development Economics; V.36-#2, pp. 405-415.


J. Ahmad and S. Harnhirun (1995). “Unit Root and Cointegration in Estimating Causality between Exports and Economic Growth: Empirical Evidence from the ASEAN Countries”. Economics Letters; V.49-#?, pp. 329-334.


*R. Riezman, C. Whiteman, and P. Summers (1996). “The Engine of Growth or its Handmaiden? A Time Series Assessment of Export-Led Growth”. Empirical Economics; V.21-#1, pp. 77-110.


*Z. Xu (1996). “On the Causality between Export Growth and GDP Growth: An Empirical Reinvestigation”. Review of International Economics; V.4-#2, pp. 172-184.


*D. Ben-David and D. Papell (1997). “International Trade and Structural Change”. Journal of International Economics; V.43-#3/4, pp. 513-512.

 

○ Industrial Countries


R. Kunst and D. Marin (1989). “On Exports and Productivity: A Causal Analysis”.Review of Economics and Statistics; V.71-#4, pp. 699-703.


P. Kugler (1991). “Growth, Exports and Cointegration: An Empirical Investigation”. Weltwirtschaftliches Archiv; V.127-#2, pp. 73-81.


P. Afxentiou and A. Serelitis (1991). “Exports and GNP Causality in the Industrial Countries”. KYKLOS; V.44-#2, pp. 167-179.


D. Marin (1992). “Is the Export-led Growth Hypothesis Valid for Industrialized Countries?”. Review of Economics and Statistics; V.74-#4, pp. 678-688.


A. Serelitis (1992). “Export Growth and Canadian Economic Development”. Journal of Development Economics; V.38-#1, pp. 133-145.


L. Oxley (1993). “Cointegration, Causality and Export-led Growth in Portugal, 1865-1985". Economics Letters; V.43-#?, pp. 163-166.


E. Ghartey (1993). “Causal Relationship Between Exports and Economic Growth: Som Empirical Evidence in Taiwan, Japan, and the US”. Applied Economics; V.25-#?, pp. 1145-1152.


D. Coe and R. Moghadam (1993). “Capital and Trade as Engines of Growth in France: An Application of Johansen's Cointegration Methodology”. IMF Staff Papers; V.40-#3, pp. 542-566.


I. Henriques and P. Sadorsky (1996). “Export-led Growth or Growth-driven Exports? The Canadian Case”. Canadian Journal of Economics; V.29-#3, pp. 540-555.


A. Boltho (1996). “Was Japanese Growth Export-Led?”. Oxford Economic Papers; V.48-#3, pp. 415-432.

 

■ Trade and Convergence (Alternative)


*J. Helliwel and A. Chung (1991). “Macroeconomic Convergence: International Transmission of Growth and Technical Progress”. in P. Hooper and J.D. Richardson, ed. International Economic Transactions: Issues in Measurement and Empirical Research. Chicago: University of Chicago Press/NBER, pp. 388-436.


F. Rassekh (1992). “The Role of International Trade in the Convergence of per capita GDP in the OECD”. International Economic Journal; V.6-#?, pp. 1-15.


*D. Ben-David (1993). “Equalizing Exchange: Trade Liberalization and Income Convergence”. Quarterly Journal of Economics; V.108-#3, pp. 653-679.


D. Ben-David (1994). “Income Disparity among Countries and the Effects of Freer Trade”. in L. Pasinetti and R. Solow, eds. Economic Growth and the Structure of Long-run Development. London: Macmillan.


*D. Ben-David (1996). “Trade and Convergence among Countries”. Journal of International Economics; V.40-#3/4, pp. 279-298.


G. Rossini and M. Burattoni (1996). “Trade and Convergence between Rich and Developing Countries: Some Empirical Evidence on Macrodeterminants of Specialization”. Weltwirtschaftliches Archiv; V.132-#1, pp. 75-96.


*M. Slaughter (2001). “International Trade and Per Capita Income Convergence: A Difference-in-differences Approach”. Journal of International Economics; V.55-#1, pp. 203-228. [comment by Ben-David follows, pp. 229-234.]


P.R. Lane (2001). “International Trade and Economic Convergence: The Credit Channel”. Oxford Economic Paper; V.53-#2, pp. 221-240.

 

A. Hughes Hallett and L. Piscitelli (2002) “Does Trade Integration Cause Convergence?”. Economics Letters; V.75-#2, pp. 165-170.

 

● Trade Policy and Economic Performance in LDCs

 

■ Trade Policy and GNP Growth


*D. Dollar (1992). “Outward-Oriented Developing Countries Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985”. Economic Development and Cultural Change; V.40-#3, pp. 523-544.


*S. Edwards (1992). “Trade Orientation, Distortions and Growth in Developing Countries”. Journal of Development Economics, V.39-#1, pp. 31-57.


*H. Wolff (1993). “Trade Orientation: Measurement and Consequences”.Estudios de EconomÍa; V.20-#3, pp. 51-86. [esp. pp. 76-82.]


J.-W. Lee (1993). “International Trade, Distortions, and Long-Run Economic Growth”. IMF Staff Papers; V.40-#2, pp. 299-321.


J. Sachs and A. Warner (1995). “Economic Reform and the Process of Global Integration”. Brookings Papers on Economic Analysis; #1 (25th Anniversary Issue), pp. 1-118. [comments]

 

*A. Harrison (1996). “Openness and Growth: A Time-Series, Cross-Country Analysis for Developing Countries”. Journal of Development Economics; V.48-#2, pp. 419-447.


*D. Ben-David and A. Bohara (1997). “Evidence on the Contribution of Trade Reform Towards International Income Equalization”. Review of International Economics; V.5-#2, pp. 246-255.


W. Easterly, N. Loayza, and P. Montiel (1997). “Has Latin America's Post-reform Growth Been Disappointing”. Journal of International Economics; V.43-#3/4, pp. 287-311.


*D. Greenaway, S. Leybourne, and D. Sapsford (1997). “Modeling Growth (and Liberalization) Using Smooth Transitions Analysis”. Economic Inquiry; V.35-#4, pp. 798-814.


F. RodrÍguez and D. Rodrik (2000). “Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence”. NBER Macroeconomics Annual–2000. Cambridge: MIT Press/NBER, pp. 261-325.

 

■ Trade Policy and Income Distribution

 

D. Robbins (1996). “HOS Hits Facts: Facts Win; Evidence on Trade and Wages in the Developing World.” HIID Working Paper # 557.

 

D. Robbins (1997). “Trade and Wages in Colombia”. Estudios de Economia; V.24-#1, pp. 47-83.

 

A. Revenga and C. Montenegro (1998). “North American Integration and Factor-Price Equalization: Is there Evidence of Wage Convergence between Mexico and the United States”. in S. Collins, ed. (1998). Imports, Exports and the American Worker. Washington, DC: Brookings, pp. 305-347.

 

A. Savvides (1998). “Trade Policy and Income Inequality: New Evidence”. Economics Letters; V.61-#?, pp. 365-372.

 

G. Hanson and A. Harrison (1999). “Trade Liberalization and Wage Inequality in Mexico”. Industrial and Labor Relations Review; V.52-#2, pp. 271-288.

A. Spilimbergo, J.L. Londoño, and M. Székely (1999). “Income Distribution, Factor Endowments, and Trade Openness”. Journal Of Development Economics; V.59-#1, pp. 77-101

 

H. Beyer, P. Rojas, and R. Vergara (1999). “Trade Liberalization and Wage Inequality”. Journal Of Development Economics V.59-#1, pp. 103-123.

 

A. Harrison and G. Hanson (1999). “Who Gains from Trade Reform? Some Remaining Puzzles”. Journal Of Development Economics V.59-#1, pp. 125-154.

 

A. Wood (1997). “Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom”. World Bank Economic Review v11-#1, pp. 33-57

 

R. Feenstra and G. Hanson (1997). “Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras”. Journal of International Economics; V.42-#3/4, pp. 371-394.

 

■ Is/Was there an East Asian Miracle?

*D. Rodrik (1995). “Getting Interventions Right: How South Korea and Taiwan Grew Rich”. Economic Policy; #20, pp.

 

*A. Young (1995). “The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Experience”. Quarterly Journal of Economics; V.110-#3, pp. 641-680.

 

S. Collins and B. Bosworth (1996). “Economic Growth in East Asia: Accumulation or Assimilation”. Brookings Papers on Economic Analysis; #2, pp. 735-191. [comments]

 

*V. Thomas and Y. Wang (1996). “Distortions, Interventions, and Productivity Growth: Is East Asia Different?”. Economic Development and Cultural Change; V.?-#?, pp. 265-288.

 

*M. Noland (1997). “Has Asian Export Performance Been Unique?”. Journal of International Economics; V.43-#1/2, pp. 79-101.

 

*J. Frankel, D. Romer and T. Cyrus (2000). “Trade and Growth in East Asian Countries: Cause and Effect?”. in H. Singer, N. Hatti, and R. Tandon, eds. NICs After the Asian Miracle. India: BR Publishing.(also NBER Working Paper, # 5732).


Topic X. Trade and Productivity–Sectors and Firms

 

● Trade and Sectoral Competitiveness/Efficiency

 

-L. Esposito and F. Esposito (1971). “Foreign Competition and Domestic Industry Profitability”. Review of Economics and Statistics; V.53-#4, pp. 343-353.

 

-E. Pagoulatos and R. Sorensen (1976). “International Trade, International Investment and Industrial Profitability of US Manufacturing”. Southern Economic Journal; V.42-#3, pp. 425-434.

 

-E. Pagoulatos and R. Sorenson (1976). “Foreign Trade, Concentration and Profitability in Open Economies”. European Economic Review; V.8-#3, pp. 255-267.

 

-R. Caves and J. Khalilzadeh-Shirazi (1977). “International Trade and Industrial Organization: Some Statistical Evidence”. in A. Jaquemin and H. deJong, eds. Welfare Aspects of Industrial Markets. Leiden: Martinius Nijhoff.

 

-H. Marvel (1980). “Foreign Trade and Domestic Competition”. Economic Inquiry; V.18-#1, pp. 103-122.

 

-T. Pugel (1980). “Foreign Trade and Market Performance”. Journal of Industrial Economics; V.29-#2, pp. 119-129.

 

-A. Jacquemin, E. de Ghellinck and C. Huveneers (1980). “Concentration and Profitability in a Small Open Economy”. Journal of Industrial Economics; V.29-#2, pp. 131-144.

 

-P. Geroski and A. Jacquemin (1981). “Imports as Competitive Discipline”. Recherches Economiques de Louvain; V.47-#?, pp. 197-208.

 

-D. DeRosa and M. Goldstein (1981). “Import Discipline in the US Manufacturing Sector”. IMF Staff Papers; V.28-#?, pp. 600-634.

 

-B. Lyons (1981). “Price-Cost Margins, Market Structure and International Trade”. In D. Currie, D. Peel and W. Peters, eds. Microeconomic Analysis. London: Croom Helm.

 

-G. Grossman (1982). “Import Competition from Developed and Developing Countries”. Review of Economics and Statistics; V.64-#2, pp. 271-281.

 

-S. Rhoades (1984). “Wages, Concentration, and Import Penetration: An Analysis of the Interrelationships”. Atlantic Economic Journal; V.12-#2, pp. 23-31.

 

-R. Caves (1985). “International Trade and Industrial Organization: Problems Solved and Unsolved”. European Economic Review; V.28-#3, pp. 377-395.

 

-M. Neumann, I. Bobel and A. Haid (1985). “Domestic Concentration, Foreign Trade and Economic Performance”. International Journal of Industrial Organization; V.3-#1, pp. 1-19.

 

-J. deMelo and S. Urata (1986). “The Influence of Increased Foreign Competition on Industrial Concentration and Profitability”. International Journal of Industrial Organization; V.4-#?, pp. 287-304.

 

-H. Yamawki (1986). “Exports, Foreign Market Structure, and Profitability in Japanese and US Manufacturing”. Review of Economics and Statistics; V.68-#4, pp. 618-627.

 

-E. deGhellinick, P. Geroski and A. Jacpuemin (1988). “Interindustry Variations in the Effect of Trade on Industry Performance”. Journal of Industrial Economics; V.37-#1, pp. 1-19

 

-R. Caves (1988). “Trade Exposure and Changing Structures of US Manufacturing Industrie”. in A.M. Spence and H. Hazard, eds. International Competitiveness. Cambridge: Ballinger, pp. 1-26.

 

-M. Katics and B. Petersen (1994). “The Effect of Rising Import Competition on Market Power: A Panel Data Study of US Manufacturing”. Journal of Industrial Economics; V.42-#3, pp. 277-286.

 

-M. Nishimizu and J. Page (1990). Trade Policy, Market Orientation, and Productivity Change in Industry”. in J. deMelo and A. Sapir, eds. Trade Theory and Economic Reform: North, South and East. Oxford: Blackwell, pp. 246-264.

 

-D. Rodrik (1990). “Closing the Technology Gap: Does Trade Liberalization Really Help?”. in G. Helleiner, ed. New Trade Theory and Industrialization and Industrialization in Developing Countries. New York: OUP.

 

-H. Pack (1990). “Industrialization and Trade”. In H. Chenery and T.N. Srinivasan, ed. Handbook of Development Economics, Vol. 1. Amsterdam: North-Holland.

 

-T. İşcan (1998). “Trade Liberalisation and Productivity: A Panel Study of the Mexican Manufacturing Industry”. Journal of Development Studies; V.34-#5, pp. 123-148.

 

-P. Krishna and D. Mitra (1998). “Trade Liberalization, Market Discipline, and Productivity Growth: New Evidence from India”. Journal of Development Economics; V.560#2, pp. 447-462.

 

-P.C. Ferreira and J.L. Rossi (2004). New Evidence from Brazil on Trade Liberalization and Productivity Growth”. International Economic Review; V.44-#4, pp. 1383-1405.

 

Trade and Firm Efficiency

 

Trade and Technical Efficiency, 1: Overviews

 

-J. Tybout (1992). “Linking Trade and Productivity: New Research Directions”. World Bank Economic Review; V.6-#2, pp. 189-211.

 

-J. Tybout (2002). “Plant- and Firm-Level Evidence on “New” Trade Theories”. In E.K. Choi and J. Harrigan, eds. Handbook of International Economics. Oxford: Blackwell, pp. 388-415.

 

-D. Greenaway (2004). Firm Level Adjustment to Globalisation. Oxford Review of Economic Policy; V.20-#3, pp. 335-342.

 

-D. Greenaway and R. Kneller (2004). New Perspectives on the Benefits of Exporting. Economie Internationale; #100, pp. 99-110.

 

--D. Greenaway and R. Kneller (2005). Exporting and Productivity: Theory, Evidence and Future Developments. Singapore Economic Review; V.50-special issue 1, pp. 303-312.

 

-D. Greenaway (2005). “Trade Liberalisation and Productivity Growth. in H. Görg, D. Greenaway, and R. Kneller, eds. Globalisation and Productivity Growth: Theory and Evidence. Houndmills: Palgrave Macmillan.

 

-R. Baldwin (2005). Heterogeneous Firms and Trade: Testable and Untestable Properties of the Melitz Model. NBER Working Paper; # 11471.

 

-E. Helpman (2006). “Trade, FDI, and the Organization of Firms”. Journal of Economic Literature; V.44-#3, pp. 589-630. [Section 1 & 2]

 

Trade and Technical Efficiency, 2: Theory

 

-C. Montagna (1995). Monopolistic Competition with Firm Specific Costs”. Oxford Economic Papers; V.47-#2, pp. 318-328.

 

-C. Montagna (2001). “Efficiency Gaps, Love of Variety, and Trade”. Economica; V.68-#269, pp. 27-44.

 

-N. Schmitt and Z. Yu (2001). “Economies of Scale and the Volume of Intra-Industry Trade”. Economics Letters; V.74-#1, pp. 127-132.

 

-S. Jean (2002). “International Trade and Firms: Heterogeneity under Monopolistic Competition”. Open Economies Review; V.13-#3, pp. 291-311.

 

-M. Melitz (2003). “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”. Econometrica; V.71-#6, pp. 1695-1725.

 

-E. Helpman, M. Melitz and S. Yeaple (2004). “Export verus FDI with Heterogeneous Firms”. American Economic Review; V94-#1, pp. 300-316.

 

-A. Bernard, S. Redding and P. Schott (2006). “Comparative Advantage and Heterogeneous Firms”. Review of Economic Studies; forth.

 

-R. Falvey, D. Greenaway and Z. Yu (2004). “Intra-Industry Trade between Asymmetric Countries with Heterogeneous Firms”. GEP Research Paper; #04-05.

 

-S. Yeaple (2005). “Firm Heterogeneity, Trade and Wages”. Journal of International Economics; V.65-#1, pp. 1-20.

 

-J. Ederington and P. McCalman (2004). “Endogenous Firm Heterogeneity and the Dynamics of Trade Liberalization”. Journal of International Economics; V.74-#2, pp. 422-440.

 

-J. Ederington and P. McCalman (2006). “International Trade and Industrial Dynamics”. International Economic Review; forthcoming.

 

-Natalie Chen, Jean Imbs and Andrew Scott (2009). The Dynamics of Trade and Competititon”. Journal of International Economics; V.77-#1, pp. 50-62.

 

-J. Eaton and S. Kortum (2002). “Technology, Geography and Trade”. Econometrica; V.70-#5, pp. 1741-1780.

 

-A. Bernard, J. Eaton, J.B. Jenson and S. Kortum (2003). “Plants and Productivity in International Trade”. American Economic Review; V.93-#4, pp. 1268-1290.

 

Trade and Technical Efficiency, 3: Empirics, Industrial Countries 

 

-H.P. Gray (1985). “Domestic Efficiency, International Efficiency and Gains from Trade”. Weltwirtschaftliches Archiv; V.121-#3, pp. 460-470.

 

-K. Zimmerman (1987). “Trade and Dynamic Efficiency”. KYKLOS; V.40-#1, pp. 73-87.

 

-A. Bernard and J.B. Jensen (1995). “Exporters, Jobs and Wages in U.S. Manufacturing, 1976-87”. BPEA: Microeconomics; pp. 67-112.

 

-A. Bernard and J.B. Jensen (1999). “Exceptional Exporter Performance: Cause, Effect, or Both?”. Journal of International Economics; V.47-#1, pp. 1-25.

 

-A. Bernard and J.B. Jensen (2004). “Why Some Firms Export”. Review of Economics and Statistics; V.86-#2, pp. 561-569.

 

-A. Bernard and J.B. Jensen (2004). “Entry, Expansion, and Intensity in the US Export Boom, 1987-1992”. Review of International Economics; V.12-#4, pp. 662-675.

 

-A. Bernard (2004). Exports and Productivity in the USA. Oxford Review of Economic Policy; V.20-#3, pp. 343-357.

 

-A. Bernard and J. Wagner (1997). “Exports and Success in German Manufacturing”. Weltwirtschaftliches Archiv; V.133-#1, pp. 134-157.

 

-A. Bernard and J. Wagner (2001). “Export Entry and Exit by German Firms”. Weltwirtschaftliches Archiv; V.137-#1, pp. 105-123.

 

-D. Davis and D. Weinstein (2003). “Why Countries Trade: Insights from Firm-Level Data”. Journal of the Japanese and International Economies; V.17-#4, pp. 432-447.

 

-K. Head and J. Ries (2003). “Heterogeneity and the FDI versus Export Decision of Japanese Firms”. Journal of the Japanese and International Economies; V.17-#4, pp. 448-467.

 

-M. Bleaney and K. Wakelin (2002). Efficiency, Innovation and Exports. Oxford Bulletin of Economics and Statistics; V.64-#1, pp. 3-15.

 

-S. Girma, D. Greenaway, and R. Kneller (2003). Export Market Exit and Performance Dynamics: A Causality Analysis of Matched Firms. Economics Letters; V.80-#2, pp. 181-187.

 

-S. Girma, D. Greenaway, and R. Kneller (2004). “Does Exporting Increase Productivity?: A Microeconomic Analysis of Matched Firms”. Review of International Economics; V.12-#5, pp. 855-866.

 

-D. Greenaway and Z. Yu (2004). Firm-Level Interactions between Exporting and Productivity: Industry-Specific Evidence. Weltwirtschaftliches Archiv; V.140-#3, pp. 376-392.

 

-D. Greenaway and R. Kneller (2004). Exports and Productivity in the UK. Oxford Review of Economic Policy; V.20-#3, pp. 429-439.

 

-C. Criscuolo, J. Haskel, and R. Martin (2004). Import Competition, Productivity, and Restructuring in UK Manufacturing. Oxford Review of Economic Policy; V.20-#3, pp. 393-408.

 

-J. Baldwin and W. Gu (2004). Trade Liberalization: Export Market Participation, Productivity Growth and Innovation. Oxford Review of Economic Policy; V.20-#3, pp. 372-392.

 

-J. Eaton, S. Kortum, and F. Kramarz (2004). “Dissecting Trade: Firms, Industries, and Export Destinations”. American Economic Review; V.94-#2, pp. 150-154.

 

-R. Caves and D. Barton (1990). Efficiency in US Manufacturing Industry. Cambridge: MIT Press.

 

Trade and Technical Efficiency, 3: Empirics, Developing Countries 

 

-J. Tybout (2000). “Manufacturing Firms in Developing Countries: How Well Do they Do and Why”. Journal of Economic Literature; V.38-#1, pp. 11-44.

 

-E. Erdem and J. Tybout (2003). “Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence”. Brookings Trade Forum 2003; pp. 1-43. [Comments by P. Goldberg and M. Melitz]

 

-M. Roberts and J. Tybout (1996). Industrial Evolution in Developing Countries: Micro Patterns of Turnover, Productivity, and Market Structure. New York: Oxford University Press.

 

-Chen, T.J. and D. Tang (1987). “Comparing Technical Efficiency between Import-Substituting and Export-Oriented Foreign Firms in a Developing Country”. Journal of Development Economics; V.26-#2, pp. 277-289.

 

-A. Kraay (1999). Exports and Economic Performance: Evidence from a Panel of Chinese Enterprises. Revue d’Économie du Développement; V.1-2, pp. 183-207.

 

-B.Y. Aw, S. Chung and M. Roberts (2000). “Productivity and Turnover in the Export Market: Micro-Level Evidence from the Republic of Korea and Taiwan (China)”. World Bank Economic Review; V.14-#1, pp. 65-90.

 

-J. Tybout, J. deMelo and V. Corbo (1991). “The Effects of Trade Reforms on Scale and Technical Efficiency: New Evidence from Chile”. Journal of International Economics; V.31-#3/4, pp. 231-250.

 

-M. Roberts and J. Tybout (1991). “Size Rationalization and Trade Exposure in Developing Countries”. in R. Baldwin, ed. Empirical Studies of Commercial Policy. Chicago: University of Chicago Press/NBER, pp. 169-193.

 

-L. Liu (1993). Entry-Exit, Learning and Productivity Change: Evidence from Chile”. Journal of Development Economics; V.42-#2, pp. 217-242.

 

-N. Pavcnik (2002). “Trade Liberalization, Exit and Productivity Improvements: Evidence from Chilean Plants”. Review of Economic Studies; V.69-#1, pp. 245-276.

 

-R. Alvarez and R. López (2005). Exporting and Performance: Evidence from Chilean Plants. Canadian Journal of Economics; V.38-#4, pp. 1384-1400.

 

-M. Roberts and J. Tybout (1997). “The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs”. American Economic Review; V.87-#4, pp. 545-564.

 

-A. Fernandes (2006). Trade Policy, Trade Volumes, and Plant Level Productivity in Colombian Manufacturing Industries. Journal of International Economics; forthcoming.

 

-J. Tybout and M.D. Westbrook (1995). “Trade Liberalization and the Dimensions of Efficiency Change in Mexican Manufacturing Industries”. Journal of International Economics; V.39-#1/2, pp. 53-78.

 

-B. Aitken, G. Hanson, and A. Harrison (1997). “Spillovers, Foreign Investment, and Export Behavior”. Journal of International Economics; V.43-#1/2, pp. 103-132.

 

-D. Hay (2001). The Post-1990 Brazilian Trade Liberalization and the Performance of Large Manufacturing Firms: Productivity, Market Share and Profits. Economic Journal; V.111-#473, pp. 620-641.

 

-M. Muendler (2002). Trade, Technology and Productivity: A Study of Brazilian Manufacturers. ms: University of California, San Diego.

 

-A. Harrison (1994). “Productivity, Imperfect Competition and Trade Reform: Theory and Evidence”. Journal of International Economics; V.36-#1/2, pp. 53-73.

 

-S. Clerides, S. Lach and J. Tybout (1998). “Is ‘Learning-by-Exporting’ Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco”. Quarterly Journal of Economics; V.113-#3, pp. 903-948.

 

-J. Damijan, M. Knell, B. Majcen and M. Rojec (2003). The Role of FDI, R&D, Accumulation, and Trade in Transferring Technology to Transition Countries: Evidence from Firm Panel Data for Eight Transition Countries. Economic Systems; V.27-#?, pp. 189-204.

 

-B. Hoekman, H.L. Kee, and M. Olarreaga (2004). “Tariffs, Entry Regulation and Markups: Country Size Matters”. Contributions to Macroeconomics; V.4-#1, Article 8.

 

-P. Schmidt (1985). “Frontier Production Functions”. Econometric Reviews; V.4-#?, pp. 289-328.

 

-J. Tybout (1992). “Making Noisy Data Sing: Estimating Production Technologies in Developing Countries”. Journal of Econometrics; V.53-#1/2/3, pp. 25-44.

 

-D. Westbrook and J. Tybout (1993). “Estimating Returns to Scale with Large, Imperfect Panels: An Application to Chilean Manufacturing Industries”. World Bank Economic Review; V.7-#1, p. 85-112.

 

Trade and X-Efficiency

 

-J.P. Martin (1978). “X-Efficiency, Managerial Effort and Protection”. Economica; V.45-#179, pp. 273-286.

 

-N. Vousden (1993). “Variable Specific Factors and the `Xefficiency Cost` of Protection”. Review of International Economics; V.1-#?, pp. 234-242.

 

-N Vousden and N. Cambell (1994). “The Organizational Cost of Protection”. Journal of International Economics; V.37-#3/4, pp. pp. 219-238.

 

-H. Horn, H. Lang and S. Lundgren (1995). “Managerial Effort Incentives, X-Inefficiency and International Trade”. European Economic Review; V.39-#1, pp. 117-138.

 

-S. Das (1997). “Strategic Managerial Delegation and Trade Policy”. Journal of International Economics; V.43-#1/2, pp. 173-188.

 

-H. Leibenstein (1966). “Allocative Efficiency vs. `X-efficiency`”. American Economic Review; V.56-#3, pp. 392-415.

 

-H. Leibenstein (1987). Inside the Firm. Cambridge: Harvard University Press.

 

-G. Stigler (1976). “The Xistence of X-efficiency”. American Economic Review; V.66-#1, pp. 213-216. [reply by Leibenstein]

 

-D. Scharfstein (1988). “Product Market Competition and Managerial Slack”. RAND Journal of Economics; V.19-#1, pp. 147-155.

 

-K. Button and T. Weyman-Jones (1992). “Ownership Structure, Institutional Organization and Measured X-Efficiency”. American Economic Review; V.82-#2, pp. 439-445.

 

-R. Frantz (1988). X-Eficiency: Theory, Evidence and Applications. Boston: Kluwer.

 

-J. Dearden, B. Ickes and L. Samuelson (1990). “To Innovate or Not to Innovate: Incentives and Motivation in Hierarchies”. American Economic Review; V.80-#5, pp. 1105-1124.

 

-R. McAfee and J. McMillan (1995). “Organizational Diseconomies of Scale”. Journal of Economics & Management Strategy; V.4-#3, pp. 399-426.

 

-T. Sjostrom and M. Weitzman (1996). “Competition and the Evolution of Efficiency”. Journal of Economic Behavior and Organization; V.30-#1, pp. 25-43.


Topic XI. Globalization of Production

 

● FDI: Characterization, Measurement, Explanation

 

■ Some Theoretical Frameworks for Thinking about FDI

 

○ Overviews

 

*Wong, Chapter 13.

 

*J. Markusen (1995). “The Boundaries of Multinational Enterprises and the Theory of International Trade”. Journal of Economics Perspectives; V.9-#2, pp. 169-189.

 

R. Caves (1983/1996) Multinational Enterprise and Economic Analysis. Cambridge: Cambridge University Press.

 

D. Julius (1990). Global Companies and Public Policy: The Growing Challenge of Foriegn Direct Investment. London: RIIA.

 

J. Alworth (1988). The Finance, Investment and Taxation Decisions of Multinationals. Oxford: Blackwell.

 

J. Markusen (2004). Multinational Firms and the Theory of International Trade. Cambridge: MIT.

 

G. Barba Narvatti and A. Venables (2006). Multinational Firms in the World Economy. Princeton: PUP.

 

○ Hymer-Kindleberger-Caves Model

 

-S. Hymer (1960). The International Operations of National Firms: A Study Of Direct Foreign Investment. Cambridge: MIT Press.

 

-C.P. Kindleberger (1969). American Business Abroad. New Haven: Yale University Press. (especially, pp. 1-36).

 

-R. Caves (1971). “International Corporations: The Industrial Economics of Foreign Investment”. Economica; V.38-#149, pp. 1-27.

 

-P. Krugman (1983). “The ‘New Theories’ of International Trade and the Multinational Enterprise”. in C. Kindleberger and D. Audretsch, eds. The Multinational Corporation in the 1980s. Cambridge: MIT Press, pp. 57-73.

 

○ Coase-Arrow-Williamson Model

 

D. Teece (1981) “The Multinational Enterprise: Market Failure and Market Power Considerations”; Sloan Management Review, V.22-#3, pp. 3-17.

 

W. Ethier and H. Horn (1990). “Managerial Control of International Firms and Patterns of Direct Investment”. Journal of International Economics; V.28-#1/2, pp. 25-45.

 

W. Ethier and J. Markusen (1996). “Multinational Firms, Technology Diffusion and International Trade”. Journal of International Economics; V.41-#1/2, pp. 1-28.

 

I. Horstmann and J. Markusen (1987). “Licensing versus Direct Investment: A Model of Internalization by the Multinational Firm”. Canadian Journal of Economics; V.20-#3, pp. 464-481.

 

I. Horstmann and J. Markusen (1996). “Exploring New Markets: Direct Investment, Contractual Relationships, and the Multinational Enterprise”. International Economic Review; V.37-#1, pp. 1-19.

 

J. Markusen (2001). “Contracts, Intellectual Property Rights, and Multinational Investment in Developing Countries”. Journal of International Economics; V.53-#1, pp. 189-204.

 

J. Dunning (1977), “Trade, Location of Activity and the MNE”, Ohlin et al., The International Allocation of Economic Activity, New York: Holmes and Meier, pp. 395-431.

 

J. Dunning (1981) International Production and the Multinational Enterprise, London: Allen and Unwin.

 

P. Buckley and M. Casson, eds. (1987). The Economic Theory of Multinational Enterprise. New York: St. Martin's.

 

M. Casson, ed. (1987) The Firm and the Market, Cambridge: MIT.

 

A.L. Calvet (1981) “A Synthesis of Foreign Direct Investment Theories and Theories of the Multinational Firm”; Journal of International Business Studies, V.12-#?, pp. 43-59.

 

D. Teece (1986). “Transactions Cost Economics and the MNE: An Assessment”. Journal of Economic Behavior and Organization; V.7-#1, pp. 21-45.

 

J.F. Hennart (1986). “What Is Internalization?”. Weltwirtschaftliches Archiv; V.122-#4, pp. 1791-804.

 

D. Purkayastha (199?). “Firm-Specific Advantages, Multinational Joint Ventures and Host Country Tariff Policy”. Southern Economic Journal; V.?-#1, pp. 89-95.

 

■ Measuring FDI

 

T. Horst (1972). “Firm and Industry Determinants of the Decision to Invest Abroad”; Review of Economics and Statistics, V.54-#?, pp. 258-266.

 

J. Dunning (1981). “Explaining the International Direct Investment Position of Countries: Towards a Dynamic or Developmental Approach”; Weltwirtschaftliches Archiv, V.117-#1, pp. ??.

 

*R. Lipsey (1988). “Changing Patterns of International Investment in and by the US”. in M. Feldstein, ed. The United States in the World Economy. Chicago: University of Chicago Press/NBER, pp. 475-545.

 

S. Grubaugh (1987). “Determinants of Direct Foreign Investment”. Review of Economics and Statistics; V.69-#2, pp. 149-152.

 

C. Culem (1988). “The Locational Determinants of Direct Investments Among Industrialized Countries”. European Economic Review; V.32-#?, pp. 885-904.

 

D. Wheeler and A. Mody (1992). “International Investment Location Decisions: the Case of US Firms”. Journal of International Economics; V.33-#1/2, pp. 57-76.

 

E.J. Ray (1989). “The Determinants of Foreign Direct Investment in the US”. in R. Feenstra, ed. Trade Policies for International Competitiveness. Chicago: University of Chicago Press/NBER, pp. 53-77.

 

E. Ray (1991). “Foreign Takeovers and New Investments in the US”. Contemporary Policy Issues; V.9-#, pp. 59-71.

 

E. Ray (1991). “A Profile of Recent Foreign Investment in the US”. Annals, AAPSS; #515, pp. 50-65.

 

J. Leonard and R. McCulloch (1991). “Foreign-Owned Businesses in the US”. in J. Abowd and R. Freeman, eds. Immigration, Trade, and the Labor Market. Chicago: University of Chicago Press/NBER, pp. 261-283.

 

C. Coughlin, J. Terza and V. Arromdee (1991). “State Characteristics and the Location of Foreign Direct Investment in the US”. Review of Economics and Statistics; V.73-#4, pp. 675-683.

 

D. Woodward (1992). “Locational Determinants of Japanese Manufacturing Startups in the US”. Southern Economic Journal; V.58-#3, pp. 690-708.

 

J. Leonard and R. McCulloch (1991). “Foreign Owned Businesses in the US”. In J. Abowd and R. Freeman, eds. Immigration, Trade and the Labor Market. Chicago: University of Chicago Press/NBER, pp. 261-283.

 

K. Froot (1990). “Multinational Corporations, Exchange Rates and Direct Investment”. in W. Branson, J. Frenkel and M. Goldstein, eds. International Policy Coordination and Exchange Rate Fluctuations. Chicago: University of Chicago Press/NBER.

 

K. Froot and J. Stein (1991). “Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach”. Quarterly Journal of Economics; V.106-#4, pp. 1191-1217.

 

I. Kravis and R. Lipsey (1992). “Sources of Competitiveness of the US and Its Multinational Firms”. Review of Economics and Statistics; V.74-#?, pp. 193-201.

 

M. Klein and E. Rosengen (1992). “Foreign Direct Investment Outflow from the US: An Empirical Assessment”. In M. Klein and P. Welfens, eds. Multinationals in the New Europe and Global Trade. Berlin: Springer-Verlag, pp. 91-103.

 

M. Klein and E. Rosengren (1994). “The Real Exchange Rate and Foreign Direct Investment in the US: Relative Wealth vs. Relative Wage Effects”. Journal of International Economics; V.36-#3/4, pp. 373-389.

 

R.E.B. Lucas (1993). “On the Determinants of Direct Foreign Investment: Evidence from East and Southeast Asia”. World Development; V.21-#3, pp. 391-406.

 

L. Trevino and J. Daniels (1994). “An Empirical Assessment of the Preconditions of Japanese Manufacturing Foreign Direct Investment in the US”. WA; V.130-#?, pp. 171-193.

 

J. Hanson, II (1995). “Is Cheap Labor a Magnet for Capital?”. Journal of Economic Education; V.26-#2, pp. 150-156.

 

R. Barrell and N. Pain (1996). “An Econometric Analysis of US Foreign Direct Investment”. Review of Economics and Statistics; V.78-#2, pp. 200-207.

 

R. Barrell and N. Pain (1997). “The Growth of Foreign Direct Investment in Europe”. National Institute Economic Review; #160, pp. 63-75.

 

R. Barrell and N. Pain (1999). “Domestic Institutions, Agglomerations and Foreign Direct Investment in Europe”. European Economic Review; V.43-#4/6, pp. 925-934.

 

E. Pennings and L. Sleuwaegen (2000). “International Relaocation: Firm and Industry Determinants”. EcLets; V.67-#?, pp. 179-186.

 

R. Lipsey (2000). “Interpreting Developed Countries' Foreign Direct Investment”. NBER Working Paper; #7810.

 

D. Carr, J. Markusen, and K. Maskus (2000). “Estimating the Knowledge-Capital Model of the Multinational Enterprise”. American Economic Review; forth.

 

J. Markusn and K. Maskus (1999). “Multinational Firms: Reconciling Theory and Evidence”. NBER Working Paper; #7163.

 

J. Markusen and K. Maskus (2001). “Discriminating Among Alternative Theories of the Multinational Enterprise”. in M. Blomström and L. Goldberg, eds. Topics in Empirical International Economics. Chicago: University of Chicago Press/NBER, pp. 71-95.

 

M. Larudee and T. Koechlin (1999). “Wages, Productivity, and Foreign Direct Investment Flows”. Journal of Economic Issues; V.33-#2, pp. 419-426.

 

T.J. Chen (1992). “Determinants of Taiwan's Direct Foreign Investment”. Journal of Development Economics; V.39-#?, pp. 397-407.

 

H.H. Aswicahyono and H. Hill (1993). “Explaining Foreign Investment Shares in LDC Industry: Incorporating the Policy Factor”. EcLets; V.41-#?, pp. 167-170.

 

● FDI in General Equilibrium

 

■ FDI as Firm-Specific Capital Arbitrage in an RV Model

 

A. Amano (1977) “Specific Factors, Comparative Advantage and International Investment”. Economica; V.44-#174, pp. 131-144.

 

R. Falvey (1979). “Specific Factors, Comparative Advantage and International Investment: An Extension”. Economica; V.46-#181, pp. 77-82.

 

R. Jones and F. Dei (1983). “International Trade and Foreign Investment: A Simple Model”. Economic Inquiry; V.21-#4, pp. 449-464.

 

D. Burgess (1978). “On the Distributional Effects of Direct Foreign Investment”. International Economic Review; V.19-#3, pp. 647-664.

 

■ FDI in Monopolistically Competitive Models

 

○ Vertical

 

E. Helpman (1984). “A Simple Theory of International Trade With Multinational Corporations”, Journal of Political Economy, V.92-#3, pp. 451-471.

 

E. Helpman and P. Krugman (1985). Market Structure and Foreign Trade. Cambridge: MIT Press. (Chapters 12 and 13).

 

R. Baldwin (1990). “Factor Market Barriers are Trade Barriers: Gains from Trade from 1992”. European Economic Review; V.34-#4, pp. 831-850.

 

F. Dei (1991). “Multinational Corporations and Absolute Advantage: The Symmetric Case”. in A. Takayama, et al., eds. Trade, Policy and International Adjustments. San Diego: Academic Press, pp. 77-91.

 

F. Dei (1993). “Multinational Corporations and Absolute Advantage: The Asymmetric Case”. in R. Becker, M. Boldrin, R. Jones and W. Thomson, eds. General Equilibrium, Growth, and Trade II. San Diego: Academic Press, pp. 490-506.

 

Gao Ting (1999). “Economic Geography and the Development of Vertical Multinational Production”. Journal of International Economics; V.48-#2, pp. 301-320

 

-K. Zhang and J. Markusen (1999). “Vertical Multinationals and Host-Country Characteristics”. Journal of Development Economics; V.59-#2, pp. 223-252.

 

-D.E. Konan (2000). “The Vertical Multinational Enterprise and International Trade”. Review of International Economics; V.8-#1, pp. 113-125.

 

Greaney Theresa (1997). “A Model of Decentralized Multinational Investment in Product Development Activities”. Japan And The World Economy; V.9-#3, pp. 315-333.

 

○ Horizontal

 

*J. Markusen (1984). “Multinationals, Multi-plant Economies and the Gains from Trade”, Journal of International Economics, V.16-#3/4, pp. 205-226.

 

*I. Horstmann and J. Markusen (1992). “Endogenous Market Structures in International Trade (natura facit saltum)”. Journal of International Economics; V.32-#1/2, pp. 109-129.

 

J. Markusen and A. Venables (1996). “The Increased Importance of Direct Investment in North Atlantic Relationships: A Convergence Hypothesis”. in M. Canzoneri, W. Ethier, and V. Grilli, eds. The New Transatlantic Economy. New York: Cambridge/CEPR, pp. 169-189.

 

J. Markusen and A. Venables (1998). “Multinational Firms and the New Trade Theory”. Journal of International Economics; V.46-#2, pp. 183-203.

 

J. Markusen (1998). “Multinational Firms, Location and Trade”. World Economy; V.21-#6, pp. 733-756.

 

A. Glass and K. Saggi (1999). “FDI Policies under Shared Factor Markets”. Journal of International Economics; V.49-#2, pp. 309-332.

 

R. Baldwin and G. Ottaviano (1998). “Multiproduct Multinational and Reciprocal FDI Dumping”. Journal of International Economics; V.54-#2, pp. 429-448.

 

S. Barrios, H. Görg, and E. Strobl (2000). “Multinational Enterprises and New Trade Theory: Evidence for the Convergence Hypothesis”. Centre for Research on Globalisation and Labour Markets Discussion Paper, #00/19.

 

*S.L. Brainard (1993). “A Simple Theory of Multinational Corporations and Trade with a Trade-off between Proximity and Concentration”. NBER Working Paper; #4269.

 

A. Rodriguez-Clare (1996). “Multinational, Linkages, and Economic Development”. American Economics Review; V.86-#4, pp. 852-873.

 

J. Markusen and A. Venables (1999). “Foreign Direct Investment as a Catalyst for Industrial Development”. European Economic Review; V.43-#2, pp. 335-356.

 

*J. Markusen and A. Venables (2000). “The Theory of Endowment, Intraindustry, and Multinational Trade”. Journal of International Economics, V.52-#2, pp. 209-234

 

○ Both

 

E. Helpman (1985). “Multinational Corporations and Trade Structure”. Review of Economic Studies; V.52-#3, 443-447.

 

J. Markusen, A. Venables, D. Konan, and K. Zhang (1996). “A Unified Treatment of Horizontal Direct Investment, Vertical Direct Investment, and the Pattern of Trade in Goods and Services”. NBER Working Paper #5696.

 

J. Markusen (1997). “Trade versus Investment Liberalization”. NBER Working Paper #6231.

 

J. Markusen (1999). “Global Investment Liberalization: Effects on Labor and the Location/ Agglomeration of High-Tech Activities and Production”. in H. Siebert, ed. Globalization and Labor. Tübingen: Mohr Siebeck/Institut für Weltwirtschaft, pp. 93-107.

 

*Carr, D. J. Markusen, K. Maskus (2001) “Estimating the Knowledge-Capital Model of the Multinational Enterprise”. American Economic Review; V.91-#3, pp. 693-708.

 

J. Markusen and K. Maskus (2001). “Multinational Firms: Reconciling Theory and Evidence”. in M. Blomstrom and L. Goldberg, eds. Topics in Empirical International Economics. Chicago: University of Chicago Press/NBER, pp. 71-95.

 

J. Markusen and K. Maskus (1999). “Discriminating among Alternative Theories of the Multinational Enterprise”. NBER Working Paper, #7164.

 

J. Markusen (2000). “Foreign Direct Investment and Trade”. Centre for International Economic Studies Policy Discussion Paper, #0019.

 

*K. Ekholm and R. Forslid (2001). “Trade and Location with Horizontal and Vertical Multi-region Firms”. Scandinavian Journal of Economics; V.103-#1, pp. 101-118.

 

S. Yeaple (2003). “The Complex Integration Strategies of Multinational and Cross Country Dependencies in the Structure of Foreign Direct Investment”. Journal of International Economics; V.60-#2, pp. 293-314.

 

*E. Helpman, M. Melitz and S. Yeaple (2004). “Export versus FDI with Heterogeneous Firms”. American Economic Review; V.94-#1, pp. 300-316.

 

*G. Grossman, E. Helpman and A. Szeidl (2006). “Optimal Integration Strategies for Multinational Firms”. Journal of International Economics; V.70-#?, pp. 216-238.

 

K. Ekholm, R. Forslid and J. Markusen (2007). “Export-Platform Foreign Direct Investment”. Journal of the European Economic Association; V.5-#?, pp. 776-795.

 

● Production Fragmentation/Outsourcing

 

■ Fragmentation in HOS and Related Models

 

R. Jones and H. Kierzkowski (1990). “The Role of Services Production and International Trade: A Theoretical Framework”. in R. Jones and A. Krueger, eds. The Political Economy of International Trade. Oxford: Basil Blackwell; pp. 31-48.

 

R. Jones and H. Kierzkowski (1998). “Globalization and the Consequences of International Fragmentation”. In R. Dornbusch, G. Calvo, and M. Obstfeld, eds. Money, Capital Mobility and Trade: Essays in Honor of Robert Mundell. Cambridge: MIT Press, pp.

 

*R. Jones and H. Kierzkowski (2001). “A Framework for Fragmentation”. In S. Arndt and H. Kierzkowski, eds. Fragmentation: New Production Patterns in the World Economy. New York: OUP, pp. 17-34.

 

R. Jones and H. Kierzkowski (2001). “Horizontal and Vertical Aspects of Fragmentation”. in L. Cheng and H. Kierzkowski, eds. Global Production and Trade in East Asia. Dordrecht: Kluwer.

 

R. Jones and H. Kierzkowski (2005). “International Trade and Agglomeration: An Alternative Framework”. Journal of Economics;

 

R. Jones and H. Kierzkowski (2006). “International Fragmentation and the New Economic Geography”. North American Journal of Economics and Finance; V.16-#1, pp. 1-10.

     

*A. Deardorff (2001). “Fragmentation across Cones”. in S.W. Arndt and H. Kierzkowski, eds., Fragmentation: New Production Patterns in the World Economy. Oxford: OUP, pp. 35-51.

 

-W. Kohler (2003). “The Distributional Effects of International Fragmentation”. German Economic Review; V.4-#1, pp. 89-120.

 

-W. Kohler (2004). “International Outsourcing and Factor Prices with Multistage Production”. Economic Journal; V.114-#494, pp. C160-C185.

 

-W. Kohler (2004). “Aspects of International Fragmentation”. Review of International Economics; V.12-#5, pp. 793-816..

 

-H. Egger and J. Falkinger (2003). “The Distributional Effects of International Outsourcing in a 2 × 2 Production Model”. North American Journal of Economics and Finance; V.14-#2, pp. 189-206.

 

-Venables, Anthony (1999). “Fragmentation and Multinational Production”. European Economic Review; V.43-#4/6, pp. 935-945.

 

G. Grossman and E. Rossi-Hansberg (2008). “Trading Tasks: A Simple Theory of Offshoring”. American Economic Review; V.98-#5, pp. 1978-1997.

 

■ Fragmentation in Monopolistically Competitive Models

 

-H. de Groot (2001). “Macroeconomic Consequences of Outsourcing. An Analysis of Growth, Welfare, and Product Variety”. De Economist; V.149-#1, pp. 53-79.

 

-M. Burda and B. Dluhosch (1999). “Globalization and European Labour Markets”. In. H. Siebert, ed. Globalization and Labor. Tubingen: Mohr, pp. 181-207.

 

-M. Burda and B. Dluhosch (2002). “Fragmentation, Globalization and Labour Markets”. In D. Greenaway, R. Upward, and K. Wakelin, eds. Trade, Investment, Migration and Labour Market Adjustment. New York: Palgrave, pp. 47-65.

 

-M. Burda and B. Dluhosch (2002). “Cost Competition, Fragmentation and Globalization”. Review of International Economics; V.10-#3, pp. 424-441.

 

-B. Dluhosch (2006). “Cost Competition, Fragmentation and Globalization”. North American Journal of Economics and Finance; V.17-#1, pp. 49-64.

 

-J. Francois and D. Nelson (2000). “Globalisation, Specialization, and the Wages of Unskilled Labor: Victims of Progress?”. CEPR Working Paper; #DP2527.

 

■ Fragmentation in Oligopoly Models

 

-J. McLaren (2000). “Globalization and Vertical Structure”. American Economic Review; V.90-#5, pp. 1239-1254.

 

-L. Zhao (2000). “Unionization, Vertical Markets, and Outsourcing”. Working Paper, Faculty of Economics, Hokkaido University.

 

-Y. Chen, J. Ishikawa, and Z. Yu (2001). “Trade Liberalization and Strategic Outsourcing”. Ms: University of Nottingham.

 

■ Fragmentation in Contract Theoretic Models

 

B. Spencer (2005). “International Outsourcing and Incomplete Contracts”. Canadian Journal of Economics; V.38-#4, pp. 1107-1135.

 

E. Helpman (2006). “Trade, FDI, and the Organization of Firms”. Journal of Economic Literature; V.44-#3, pp. 589-630. [Section 3]

 

G. Grossman and E. Rossi-Hansberg (2006). “The Rise of Offshoring: It's Not Wine for Cloth Anymore”. in The New Economic Geography: Effects and Policy Implications. Federal Reserve Bank of Kansas City, pp. 59-102.

 

G. Grossman and E. Helpman (2002), “Outsourcing versus FDI in Industry Equilibrium”. Quarterly Journal of Economic; V.117-#1, pp. 85-120.

 

G. Grossman and E. Helpman (2003), “Integration versus Outsourcing in Industry Equilibrium”. Journal of the European Economic Association; V.1-#2/3, pp. 317-327.

 

G. Grossman and E. Helpman (2004), “Managerial Incentives and the International Organization of Production”. Journal of International Economics; V.63-#23, pp. 237-262.

 

G. Grossman and E. Helpman (2005), “Outsourcing in a Global Economy”. Review of Economic Studies; V.72-#1, pp. 135-159.

 

P. Antràs (2003). “Firms, Contracts, and Trade Structure”. Quarterly Journal of Economics. V.118-#4, pp. 1375-1418.

 

P. Antràs and E. Helpman (2004). Global Sourcing”, Journal of Political Economy. V.112-#3, pp. 552-80.

 

P. Antràs (2005). “Incomplete Contracts and the Product Cycle”. American Economic Review; V.95-#4, pp. 1054-1073.

 

P. Antràs, L. Garicano and E. Rossi-Hansberg (2006). “Offshoring in a Knowledge Economy”. Quarterly Journal of Economics. V.121-#1, pp. 31-77.

 

■ Empirics of Fragmentation

 

D. Hummels, J. Ishii, and K.-M. Yi (2001). “The Nature and Growth of Vertical Specialization in World Trade”. Journal of International Economics; V.54-#1, pp. 75-96.

 

K.-M. Yi (2003). “Can Vertical Specialization Explain the Growth of World Trade?”. Journal of Political Economy; V.111-#1, pp. 52-102.

 

H. Chen, V. Kondratowicz, and K.-M. Yi (2005). Vertical Specialization and Three Facts about International Trade”. North American Journal of Economics and Finance; V.16-#1, pp. 35-59.

 

G. Hanson, R. Mataloni and M. Slaughter (2005). “Vertical Production Networks in Multinational Firms”. Review of Economics and Statistics; V.87-#4, pp. 664-678.

 

D. Swenson (2000). “Firm Outsourcing Decisions: Evidence from U.S. Foreign Trade Zones”. Economic Inquiry; V.38-#2, pp. 175-189.

 

R. Feenstra, G. Hanson, and D. Swenson (2000). “Offshore Assembly from the United States: Production Characteristics of the 9802 Program”. in R. Feenstra, ed. The Impact of International Trade on Wages. Chicago: University of Chicago Press/NBER, pp. 85-122.

 

H. Görg (2000). “Fragmentation and Trade: US Inward Processing Trade in the EU”. WA; V.136-#3, pp. 403-421.

 

F. Ruane and H. Görg (2001). “Globalization and Fragmentation: Evidence for the Electronics Industry in Ireland”. in S.W. Arndt and H. Kierzkowski, eds., Fragmentation: New Production Patterns in the World Economy. Oxford: OUP, pp. 144-164.

 

A. Yeats (2001). “Just How Big is Global Production Sharing?”. in S.W. Arndt and H. Kierzkowski, eds., Fragmentation: New Production Patterns in the World Economy. Oxford: OUP, pp. 108-143.

 

G. Graziani (2001). “International Subcontracting in the Textile and Clothing Industry”. in S.W. Arndt and H. Kierzkowski, eds., Fragmentation: New Production Patterns in the World Economy. Oxford: OUP, pp. 209-230.

 

H. Kierzkowski (2001). “Joining the Global Economy: Experience and Prospects of Transition Economies”. in S.W. Arndt and H. Kierzkowski, eds., Fragmentation: New Production Patterns in the World Economy. Oxford: OUP, pp. 231-253.

 

S. Baldone, F. Sdogati, and L. Tajoli (2001). “Patterns and Determinants of International Fragmentation of Production: Evidence from Outward Processing Trade between the EU and Central Eastern European Countries”. Weltwirtschaftliches Archiv; V.137-#1, pp. 80-104.

 

-S. Girma and H. Gorg (2004). “Outsourcing, Foreign Ownership, and Productivity: Evidence from UK Establishment-level Data”. Review of International Economics; V.12-#5, pp. 817-832.

 

Gereffi, Gary and Miguel Korzeniewicz (1990). “Commodity Chains and Footwear Exports in the Semiperiphery”. In W.G. Martin, ed. Semiperipheral States in the World Economy. Wesport: Greenwood Press, pp. 45-68.

 

Gereffi, Gary and Miguel Korzeniewicz, eds. (1994). Commodity Chains and Global Capitalism. Westport: Praeger.

 

Gereffi, Gary (1999). “International Trade and Industrial Upgrading in the Apparel Commodity Chain”. Journal of International Economics; V.48-#1, pp.37-70.

 

Borrus, Michael and John Zysman (1997). “Globalization with Borders: The Rise of Wintelism as the Future of Global Competition”. Industry and Innovation; V.4-#2, pp. 141-166.

 

Borrus, Michael (1997). “Left for Dead: Asian Production Networks and the Revival of US Electronics”. in Barry Naughton, ed. The China Circle: Economics and Technology in the PRC, Taiwan, and Hong Kong. Washington, D.C.: Brookings, pp. 139-163.

 

E. Leamer and M. Storper (2001). “The Economic Geography of the Internet Age”. Journal of International Business Studies; V.32-#4, pp. 641-665.

 

F. Levy and R. Murnane (2004). The New Division of Labor. Princeton: Princeton University Press.

 

A. Blinder (2006). Offshoring: The New Industrial Revolution. Foreign Affairs; V85-#2, pp. 113-128.


Topic XII. Globalization and Labor Markets

 

● International Trade and Labor Markets

 

■ Analytics of Trade and Labor Markets: The Stolper-Samuelson Theorem


*Wolfgang Stolper and Paul Samuelson (1941). “Protection and Real Wages”. Review of Economic Studies; V.9-#1, pp.58-73.


*Jones, Ronald (1965). “The Structure of Simple General Equilibrium Models”. Journal of Political Economy; V.73-#6, pp. 557-572.


*Jones, Ronald (2000). “Technical Progress, Price Adjustments and Wages”. Review of International Economics; V.8-#3, pp. 497-503


L.A. Metzler (1949). “Tariffs, the Terms of Trade, and the Distribution of National Income”. Journal of Political Economy. V.57-#1, pp. 1-29. also in Caves and Johnson.


Jagdish Bhagwati (1959). Protection, Real Wages, and Real Incomes”. Economic Journal; V.69-#276, pp. 733-748.


H.G. Johnson (1960). “Income Distribution, the Offer Curve and the Effects of Tariffs”. Manchester School; V.28-#3, pp. 215-242.


W. Ethier (1984). “Protection and Real Incomes Once Again”. Quarterly Journal of Economics; V.99-#1, pp. 193-200.


*Jones, Ronald and José Scheinkman (1977). “The Relevance of the Two-Sector Production Model in Trade Theory”. Journal of Political Economy; V.85-#5, pp. 909-935.


*P.J. Lloyd and A. Schweinberger (1997). “Conflict Generating Product Price Changes: The Imputed Output Approach”. European Economic Review; V.41-#?, pp. 1569-1587.


*B. Xu (2001). “Factor Bias, Sector Bias and the Effects of Technical Progress on Relative Factor Prices”. Journal of International Economics; V.54-#1, pp. 5-25.

 

■ Empirics of Trade and Labor Markets, 1: Is there a Link between Trade and Wages

 

○ Trade and Demand for Labor, 1: Factor Content Studies


*Deardorff, Alan and Robert Staiger (1988). “An Interpretation of the Factor Content of Trade”. Journal of International Economics; V.24-#1/2, pp. 93-107.


*Leamer, Edward (1996). “What’s the Use of Factor Contents”. Journal of International Economics, V50-#1, pp. 17-49.


P. Krugman (2000). “Technology, Trade and Factor Prices”. Journal of International Economics, V50-#1, pp. 51-71


A. Deardorff (2000). “Factor Prices and the Factor Content of Trade Revisited: What’s the Use”. Journal of International Economics, V50-#1, pp. 73-90.


A. Panagariya (2000). “Evaluating the Factor-Content Approach to Measuring the Effect of Trade on Wage Inequality”. Journal of International Economics, V50-#1, pp. 91-116.


W. Kohler (1999). “Trade and Wages: What Can Factor Contents Tell Us?”. ms: Department of Economics, University of Linz.


L. Katz and K. Murphy (1992). “Changes in Relative Wages, 1963-1987: Supply and Demand Factors”. Quarterly Journal of Economics; V.107-#1, pp. 35-78.


*G. Borjas, R. Freeman and L. Katz (1997). “How Much Do Immigration and Trade Affect Labor Market Outcomes”. Brookings Papers on Economic Activity; 1997-#1, pp. 1-90. [comments]

 

E. Berman, J. Bound and Z. Grilliches (1994). “Changes in the Demand for Skilled Labor within US Manufacturing: Evidence from the Annual Survey of Manufactures”. Quarterly Journal of Economics; V.109-#2, pp. 367-397.


R. Baldwin (2000). “Inferring Relative Factor Price Changes from Quantitative Data”. in M. Blomström and L. Goldberg, Eds. Topics in Empirical International Economics: A Festschrift in Honor of Bob Lipsey. Chicago: University of Chicago Press/NBER, pp. 47-64.

 

○ Trade and Demand for Labor, 2: Elasticity of Demand

 

D. Rodrik (1997). “Consequences of Trade for Labor Markets and the Employment Relationship”. Has Globalization Gone Too Far. Washington, DC: IIE, pp. 11-27.

 

P. Krugman (1999). “Domestic Policies in a Global Economy”. In S. Collins and R. Lawrence, eds. Brookings Trade Forum 1999. Washington, DC: Brookings, pp. 73-93. [esp. “Appendix: Trade and the Elasticity of Demand for Labor”, pp. 89-93.]

 

Jean, Sebastien (2000). “The Effect of International Trade on Labor-Demand Elasticities: Intersectoral Matters”. Review of International Economics; V.8-#3, pp. 504-16.

 

M. Slaughter (2001). “International Trade and Labor-Demand Elasticities”. Journal of International Economics; V.54-#1, pp. 27-56.

 

Sajjid Chinoy, Pravin Krishna, and Devashish Mitra (2001). “Trade Liberalization and Labor Demand Elasticities: Evidence from Turkey”. Journal of International Economics, V.55-#2, pp. 391-409.

 

Arvind Panagariya, Shekhar Shah, and Deepak Mishra (2001). Demand Elasticities in International Trade: Are they Really Low”. Journal of Development Economics; V.64-#2, pp. 313-342.

 

Panagariya, A. (1999). “Trade Openness: Consequences for the Elasticity of Demand for Labor and Wage Outcomes”. Ms: University of Maryland.

 

○ Mandated Wage (Jones-Baldwin) Regressions


*Baldwin, Robert and G. Cain (2000). “Shifts in Relative US Wages: The Role of Trade, Technology and Factor Endowments”. Review of Economics and Statistics; V.82-#4, pp. 580-595..


*Feenstra, Robert and Gordon Hanson (1999). “Productivity Measurement and the Impact of Trade and Technology on Wages: Estimates for the US, 1972-1990”.Quarterly Journal of Economics; V.114-#3, pp. 907-940.


*Leamer, Edward (1996). “In Search of Stolper-Samuelson Effects on US Wages”. in S. Collins, ed. Imports, Exports and the American Worker. Washington, DC: Brookings, pp. 141-214.


T. Desjonqueres, S. Machin, and J. Van Reenen (1999). “Another Nail in the Coffin? Or Can the Trade Based Explanation of Changing Skill Structures be Resurrected?”. Scandinavian Journal of Economics; V.101-#4, pp. 533-554.


*J. Haskel and M. Slaughter (1999). “Trade, Technology and U.K. Wage Inequality”. Economic Journal; V.111-#468, pp. 163-187.

 

*J. Haskel and M. Slaughter (2002). “Does the Sector Bias of Skill-Biased Technological Change Explain Changing Skill Premia?”. European Economic Review; V.46-#10, pp. 1757-1783.


Baldwin, Robert and R. Spence Hilton (1984). “A Technique for Indicating Comparative Costs and Predicting Changes in Trade Ratios”. Review of Economics and Statistics; V.66-#1, pp. 105-110.


R.S. Hilton (1984). “Commodity Trade and Relative Return to Factors of Production”. Journal of International Economics; V.16-#3/4, pp. 259-270.

 

○ GNP Function Approach (Alternative)


James Harrigan and Rita Balaban (1997). “U.S. Wages in General Equilibrium: Estimating the Effects of Trade, Technology, and Factor Supplies, 1963-1991". ms.: Federal Reserve Bank of New York.


*J. Harrigan (2000). “International Trade and American Wages in General Equilibrium, 1967-1995.  in R. Feenstra, ed. The Impact of International Trade on Wages. Chicago: University of Chicago Press/NBER, pp. 171-193.


D. Burgess (1976). “Tariffs and Income Distribution--Some Empirical Evidence for the US”. Journal of Political Economy; V.84-#1, pp. 17-45.


J. Chipman (1978). “Towards the Construction of an Optimal Aggregative Model of International Trade: West Germany, 1963-1975". Annals of Economic and Social Measurement; V.6-#?, pp. 535-554.


Kohli, Ulrich (1991). Technology, Duality, and Foreign Trade. Ann Arbor: University of Michigan Press.

 

○ CGE Approaches (Alternative)


R. Rowthorn, R. Kozul-Wright, and Y. Akyüz (1997). “Adapting to North-South Trade: A General Equilibrium Approach to Policy Options”. Oxford Economic Papers; V.49-#4, pp. 483-503.


R. Tyers and Y. Yang (1997). “Trade with Asia and Skill Upgrading: Effects on Labor Markets in the Older Industrial Countries”. Weltwirtschaftliches Archiv,; V.133-#3, pp. 383-417.


P. Krugman (1995). “Growing World Trade: Causes and Consequences”. Brookings Papers on Economic Analysis, #1, pp. 327-362.


W. Cline (1997). Trade and Income Distribution. Washington, DC: IIE. [Chapters 3 & 4]


P. Minford, J. Riley, and E. Nowell (1997). “Trade Technology and Labor Markets in the World Economy, 1970-1990: A Computable General Equilibrium Analysis”. Journal of Development Studies; V.34-#1, pp. 1-34.


A. Smith (1998). “The Labour Market Effects of Trade: A Computable General Equilibrium Approach”. in Mathias Dewatripont, AndrÉ Sapir, and Khalid Sekkat, eds. Trade and Jobs in Europe: Much Ado About Nothing? Oxford: Oxford University Press.


J. Francois and D. Nelson (1998). “Trade, Technology and Wages: General Equilibrium Mechanics”. Economic Journal, V.108-#450, pp. 1483-1499.


K. Reinert and D. Roland-Holst (1998). “North-South Trade and Occupational Wages: Some Evidence from North America”. Review of International Economics; V.6-#1, pp. 74-89.

 

■ Labor Market Microstructure, Trade and Wages (Alternative)


*Steven Matusz (1985). “The Heckscher-Ohlin-Samuelson Model with Implicit Contracts”.Quarterly Journal of Economics; V.100-#4, pp. 1313-1329.


*C. Davidson, L. Martin, and S. Matusz (1999). “Trade and Search Generated Unemployment”. Journal of International Economics; V.48-#2, pp. 271-299.


*Andrew Bernard and J. Bradford Jensen (1995). “Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987.” Brookings Papers on Economic Activity, Microeconomics, pp.67-112.


*Andrew Bernard and J. Bradford Jensen (1997). “Exporters, Skill Upgrading, and the Wage Gap.” Journal of International Economics, V.42-#1/2, pp. 3-31.

 

Borjas, George and Valerie Ramey (1994). “The Relationship between Wage Inequality and International Trade”. In J.H. Bergstrand, T.F. Cosimano, J.W. Houck, and R.G. Sheehan, eds. The Changing Distribution of Income in an Open U.S. Economy. Amsterdam: North-Holland, pp. 217-241.

 

*Noel Gaston and Daniel Trefler (1995). “Union Wage Sensitivity to Trade and Protection: Theory and Evidence.” Journal of International Economics; V.39-#1/2, pp.1-25.

 

● Adjustment and Adjustment Assistance

 

■ Trade and Labor Market Adjustment

 

○ Adjustment Costs and the Welfare Economics of Adjustment Assistance


W.M. Corden (1974). Trade Policy and Economic Welfare. Oxford: OUP. pp. 104-112.


A. Deardorff (1987). “Safeguards Policy and the Conservative Social Welfare Function”.  in H. Kierzkowski, ed. Protection and Competition in International Trade. Oxford: Blackwell, pp. 22-40.


J.P. Neary (1982). “Intersectoral Capital Mobility, Wage Stickiness, and the Case for Trade Adjustment Assistance”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 39-64.


M. Mussa (1982). “Government Policy and the Adjustment Process”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 13-122.


P. Diamond (1982). “Protection, Trade Adjustment Assistance, and Income Distribution”. J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 123-145.


H. Flam, T. Persson and L.E.O. Svensson (1983). “Optimal Subsidies to Declining Industries”. Journal of Public Economics; V.22-#?, pp. 327-345.


M. Riordan and R. Staiger (1993). “Sectoral Shocks and Structural Unemployment”. International Economic Review; V.34-#?, pp. 611-629.


R. Feenstra and T. Lewis (1994). “Trade Adjustment Assistance and Pareto Gains from Trade”. Journal of International Economics; V.36-#3/4, pp. 201-222.


J. Brander and B. Spencer (1994). “Trade Adjustment Assistance: Welfare and Incentive Effects of Payments to Displaced Workers”.  Journal of International Economics; V.36-#3/4, pp. 239-261.


W. Mayer (1994). “Optimal Pursuit of Safeguard Actions over Time”. in A. Deardorff and R. Stern, eds. Analytical and Negotiating Issues in the Global Trading System. Ann Arbor: University of Michigan Press, pp. 315-355.


K.C. Fung and R. Staiger (1996). “Trade Liberalization and Trade Adjustment Assistance”. in M. Canzoneri, W. Ethier and V. Grilli, eds. The New Transatlantic Economy. Cambridge: CUP, pp. 265-286.

 

○ Stochastic Shocks

 

R. Staiger and G. Tabellini (1989). “Rules and Discretion in Trade Policy”. European Economic Review; V.33-#?, pp. 1265-1277.


R. Boadway and D. Wildasin (1990). “Optimal Tax-Subsidy Policies for Industrial Adjustment to Uncertain Shocks”. Oxford Economic Paper; V.42-#?, pp. 105-134.


M. Gavin (1990). “Structural Adjustment to a Terms of Trade Disturbance”: The Role of Relative Prices”. Journal of International Economics; V.28-#?, pp. 217-243.


A. Dixit and R. Rob (1994). “Risk-Sharing, Adjustment and Trade”. Journal of International Economics; V.36-#3/4, pp. 263-287.


R.H. Bates, P. Brock and J. Tiefenthaler (1991). “Risk and Trade Regimes: Another Look”. International Organization; V.45-#1, pp. 1-18.


D. Rodrik (1998). “Why Do More Open Economies Have Bigger Governments?”.Journal of Political Economy; V.106-#5, pp. 997-1032.

 

■ Empirics of Trade and Adjustment

 

○ Identifying Trade Sensitive Sectors and Trade-Displaced Workers


J. Martin (1979). “Measuring the Effects of Changes in Trade Flows: A Survey of Recent Research”. In The Impact of the Newly Industrialized Countries on Production and Trade in Manufactures. Paris: OECD.


J. Martin and J. Evans (1981). “Notes on Measuring the Employment Displacement Effects of Trade by the Accounting Procedure”. Oxford Economic Paper; V.33-#1, pp. 154-164.


G. Grossman (1982). “Comment”. In J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press/NBER, pp. 396-399.


C. Driver, A. Kilpatrick and B. Naisbitt (1988). “The Sensitivity of Estimated Employment Effects in Input-Output Studies: An Example of the Use of Marginal versus Average Coefficients”. Economic Modelling; V.5-#2, pp. 145-150.


C.M. Aho and J. Orr (1981). “Trade Sensitive Employment: Who are the Affected Workers?”. Monthly Labor Review; V.104-#2, pp. 29-35.


C. K. Schoepfle (1982). “Imports and Domestic Employment: Identifying Affected Industries”. Monthly Labor Review; V.105-#8, pp. 13-26.

 

○ Empirics of Trade and Employment

 

US Case


A. Krueger (1980). “Restructruing for Import Competition from Developing Countries, I: Labor Displacements and Economic Redeployment in the US”.Journal of Policy Modeling; V.2-#?, pp. 165-184.


G. Grossman (1987). “The Employment and Wage Effects of Import Competition in the US”. Journal of International Economics and Integration; V.2-#1, pp. 1-23.


W. Dickens (1988). “The Effects of Trade on Employment: Techniques and Evidence”. In L. D’A. Tyson, W. Dickens and J. Zysman, eds. The Dynamics of Trade and Employment. Cambridge: Ballinger, pp. 41-85.


D. Kruse (1988). “International Trade and the Labor Market Experience of Displaced Workers”. Industrial and Labor Relations Review; V.41-#3, pp. 402-417.


C. Mann (1988). “The Effect of Foreign Competition in Prices and Quanitites on the Employment in Import Sensitive U.S. Industries”. International Trade Journal; V.2-#?, pp. 409-444.


A. Revenga (1992). “Exporting Jobs? The Impact of Import Competition on Employment and Wages in US Manufacturing”. Quarterly Journal of Economics; V.107-#1, pp. 255-284.


T. Hungerford (1995). “International Trade, Comparative Advantage, and the Incidence of Layoff Employment Spells”. Review of Economics and Statistics; V.77-#3, pp. 511-521.


J. Addison, D. Fox, and C. Ruhm (1995). “Trade and Displacement in Manufacturing”. Monthly Labor Review; V.118-#?, pp. 58-67.


D. Clark, H. Herzog, and A. Schlottmann (1998). “Import Competition, Employment Risk, and the Job-Search Outcomes of Trade-Displaced Manufacturing Workers”. Industrial Relations; V.37-#2, pp. 182-206.


L. Kletzer (1998). “International Trade and Job Displacement in U.S. Manufacturing, 1979-1991". in S. Collins, ed. Imports, Exports, and the American Worker. Washington, DC: Brookings, pp. 422-472.


R. Staiger, A. Deardorff, and R. Stern (1987). “Employment Effects of Japanese and American Protectionism”. In D. Salvatore, ed. The New Protectionist Threat to World Welfare. Amsterdam: North-Holland, pp. 164-180.


H. Lee and D. Roland-Holst (1994). “Shifting Comparative Advantage and the Employment Effects of US-Japan Trade”. World Economy; V.17-#3, pp. 323-363.

 

European Cases


D. Schumacher (1984). “North-South Trade and Shifts in Employment: A Comparative Analysis of Six European Community Countries”. International Labor Review; V.3-#?, pp. 333-347.


A. Sapir and D. Schumacher (1985). “The Employment Impact of Shifts in the Composition of Commodity and Services Trade”. Employment Growth and Structural Change. Paris: OECD.


C. Driver, A. Kilpatrick and B. Naisbitt (198?). “The Employment Effects of Changes in the Structure of UK Trade”. Journal of Economic Studies; V.12-#5, pp. 19-38.


C. Driver, A. Kilpatrick and B. Naisbitt (1985). “The UK Employment Effects of Trade Expansion with the EEC and the NICs”. European Economic Review; V.30-#2, pp. 427-38.


P. Messerlin (1995). “The Impact of Trade and Capital Movements on Labour: Evidence on The French Case”. OECD Economic Studies, #24, pp. 89-124.


J. Konigs and H. Vandenbussche (1995). “The Effect of Foreign Competition on UK Employment and Wages: Evidence from Firm-level Panel Data”. Weltwirtschaftliches Archiv; V.131-#4, pp. 655-671.


K. Aiginger, R. Winter-Ebmer, and J. Zweimüller (1996). “Eastern European Trade and the Austrian Labor Market”. Weltwirtschaftliches Archiv; V.132-#3, pp. 476-500.

 

D. Greenaway, R. Hine, and P. Wright (1999). “An Empirical Assessment of the Impact of Trade on Employment in the United Kingdom”. European Journal of Political Economy; V.15-#?, pp. 485-500.

 

Other


K. Lang (1998). “The Effect of Trade Liberalization on Wages and Employment: The Case of New Zealand”. Journal of Labor Economics; V.16-#4, pp. 792-814.


N. Gaston (1998). “The Impact of International Trade and Protection on Australian Manufacturing Employment”. Australian Economic Papers; V.37-#2, pp. 119-136.


A. Deardorff and R. Stern (1986). “Changes in Trade and Employment in the Major Industrialized Countries”. Chapter 9 in The Michigan Model of World Trade and Production. Cambridge: MIT, pp. 199-218.


B. Balassa (1986). “The Employment Effects of Trade in Manufactured Products Between Developed and Developing Countries”. Journal of Policy Modeling; V8-#3, pp. 371-390.

 

A. Wood (1991). “How Much Does Trade with the South Affect Workers in the North?”. World Bank Research Observer; V.6-#3, pp. 19-35.

 

○ Intra-Industry Trade and Adjustment


B. Balassa (1966). “Tariff Reductions and Trade in Manufactures Among the Industrial Countries”. American Economic Review; V.56-#3, pp. 466-473.


G. Hufbauer and J. Chilas (1972). “Specialization by Industrial Countries: Extent and Consequences”. in H. Giersch, ed. The International Division of Labor: Problems and Perspectives. Tubingen: J.C.B. Mohr, pp. 3-38.


L. Lundberg and P. Hansson (1986). “Intra-Industry Trade and Its Consequences for Adjustment”. in D. Greenaway and P.K.M. Tharakan, eds. Imperfect Competition and International Trade: The Policy Aspects of Intra-Industry Trade. Brighton: Wheatsheaf, pp. 129-147.


R. Hine (1989). “Customs Union Enlargement and Adjustment: Spain’s Accession to the European Community”. Journal of Common Market Studies; V.28-#1, pp. 1-28.


C. Hamilton and P. Kniest (1991). “Trade Liberalisation, Structural Adjustment and Intra-industry Trade”. Weltwirtschaftliches Archiv; V.127-#2, pp. 356-367.


M. Brülhart (1994). “Marginal Intra-industry Trade: Measurement and Relevance for the Pattern of Industrial Adjustment”. Weltwirtschaftliches Archiv; V.130-#3, pp. 600-613.


P. Dixon and J. Menon (1997). “Measures of Intra-industry Trade as Indicators of Factor Market Disruption”. Economic Record; V.73-#222, pp. 233-237.


J. Menon and P. Dixon (1997). “Intra-Industry versus Inter-Industry Trade: Relevance for Adjustment Costs”. Weltwirtschaftliches Archiv; V.133-#1, pp. 164-169.


A. Azhar, R. Elliott, and C. Milner (1998). “Static and Dynamic Measurement of Intra-Industry Trade and Adjustment: A Geometric Reappraisal”. Weltwirtschaftliches Archiv; V.134-#?, pp. 404-422.


M. Brülhart and R. Elliott (1998). “Adjustment to the European Single Market: Inferences from Intra-industry Trade Patterns”. Journal of Economic Studies; V.25-#3, pp. 225-247.

 

M. Brülhart (2000). “Dynamics of Intra-Industry Trade and Labour-Market Adjustment”. Review of International Economics, V8-#3, pp. 420-435.


M. Lovely and D. Nelson (2000). “Marginal Intra Industry Trade and Labour Adjustment”. Review of International Economics, V8-#3, pp. 436-447.


M. Lovely and D. Nelson (2002). “Intra-Industry Trade as an Indicator of Labor-Market Adjustment”. Weltwirtschaftliches Archiv; V.138-#2, pp. 179-206.


M. Brülhart, Anthony Murphy, and Eric Strobl (1998). “Intra-Industry Trade and Job Turnover”.  GLM Research Paper, No. 98/4.

 

■ Law and Economics of Trade Adjustment Assistance

 

○ Institutions and Policy


R. Baldwin and J. Mutti (1973). “Policy Issues in Adjustment Assistance: The US”. in H. Hughes, ed. Prospects for Partnership: Industrialization and Trade Policies in the 1970s. Baltimore: Johns Hopkins/World Bank, pp. 148-177.


OECD (1975). Adjustment for Trade: Studies in Industrial Adjustment Problems and Policies.  Paris: OECD.


C. Frank and S. Levinson (1977). Foreign Trade and Domestic Aid. Washington, DC: Brookings.

 

W. Dewald, ed. (1978). The Impact of International Trade and Investment on Employment. Washington, DC: US Department of Labor.


J.D. Richardson (1982). “Trade Adjustment Assistance Under the Trade Act of 1974: An Analytical Examination and Worker Survey”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 321-368.


R. Lawrence and R. Litan (1986). Saving Free Trade: A Pragmatic Approach. Washington, DC: Brookings.


L. Jacobson (1998). “Compensation Programs”. in S. Collins, ed. Imports, Exports, and the American Worker. Washington, DC: Brookings, pp. 473-537.


E. Kapstein (1998). “Trade Liberalization and the Politics of Trade Adjustment Assistance”. International Labour Review; v.137-#4, pp. 501-516.

 

○ Some Basic Analytics

 

W.M. Corden (1974). Trade Policy and Economic Welfare. Oxford: OUP. pp. 104-112.

 

A. Deardorff (1987). “Safeguards Policy and the Conservative Social Welfare Function”. in H. Kierzkowski, ed. Protection and Competition in International Trade. Oxford: Blackwell, pp. 22-40.

 

P. Neary (1982). “Intersectoral Capital Mobility, Wage Stickiness, and the Case for Trade Adjustment Assistance”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 39-64.

 

M. Mussa (1982). “Government Policy and the Adjustment Process”. in J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 13-122.

 

P. Diamond (1982). “Protection, Trade Adjustment Assistance, and Income Distribution”. J. Bhagwati, ed. Import Competition and Response. Chicago: University of Chicago Press, pp. 123-145.

 

H. Flam, T. Persson and L.E.O. Svensson (1983). “Optimal Subsidies to Declining Industries”. Journal of Public Economics; V.22-#?, pp. 327-345.

 

R. Boadway and D. Wildasin (1990). “Optimal Tax-Subsidy Policies for Industrial Adjustment to Uncertain Shocks”. Oxford Economic Papers; V.42-#?, pp. 105-134.

 

M. Gavin (1990). “Structural Adjustment to a Terms of Trade Disturbance”: The Role of Relative Prices”. Journal of International Economics; V.28-#?, pp. 217-243.

 

M. Riordan and R. Staiger (1993). “Sectoral Shocks and Structural Unemployment”. International Economic Review; V.34-#?, pp. 611-629.

 

R. Feenstra and T. Lewis (1994). “Trade Adjustment Assistance and Pareto Gains from Trade”. Journal of International Economics; V.36-#3/4, pp. 201-222.

 

J. Brander and B. Spencer (1994). “Trade Adjustment Assistance: Welfare and Incentive Effects of Payments to Displaced Workers”. Journal of International Economics; V.36-#3/4, pp. 239-261.

 

A. Dixit and R. Rob (1994). “Risk-Sharing, Adjustment and Trade”. Journal of International Economics; V.36-#3/4, pp. 263-287.

 

W. Mayer (1994). “Optimal Pursuit of Safeguard Actions over Time”. in A. Deardorff and R. Stern, eds. Analytical and Negotiating Issues in the Global Trading System. Ann Arbor: University of Michigan Press, pp. 315-355.

 

K.C. Fung and R. Staiger (1996). “Trade Liberalization and Trade Adjustment Assistance”. in M. Canzoneri, W. Ethier and V. Grilli, eds. The New Transatlantic Economy. Cambridge: CUP, pp. 265-286.

 

○ Uncertainty and Tariffs as Insurance

 

S. Turnovsky (1978). “The Distribution of Welfare Gains from Price Stabilization: A Survey of Some Theoretical Issues”. in F. Adams and S. Klein, eds. Stabilizing World Commodity Markets. Lexington: D.C. Heath, pp. 119-148,

 

D. Newberry and J. Stiglitz (1981). The Theory of Commodity Price Stabilization. Oxford: Oxford University Press.

 

D. Newberry (1984). “Commodity Price Stabilization in Imperfectly Competitive Markets”. in G. Storey, A. Schmitz and A. Sarris, eds. International Agricultural Trade. Boulder: Westview Press.

 

C. Gilbert (1985). “Futures Trading and the Welfare Evaluation of Commodity Price Stabilisation”. Economic Journal; V.?-#?, pp. 637-661.

 

S. Turnovsky, H. Shalit and A. Schmitz (1980). “Consumer’s Surplus, Price Instability, and Consumer Welfare”. Econometrica; V.48-#1, pp. 135-152.

 

E.K. Choi and S. Johnson (1987). “Consumers’ Surplus and Price Uncertainty”. International Economic Review; V.?-#?, pp. 407-411.

 

E.K. Choi and S. Johnson (1991). “Uncertainty, Price Stabilization and Welfare”. Southern Economic Journal; V.57-#3, pp. 789-797.

 

D. Newberry and J. Stiglitz (1984). “Pareto Inferior Trade”. Review of Economic Studies. V.51-#1, pp. 1-12.

 

J. Eaton and G. Grossman (1985). “Tariffs as Insurance: Optimal Commercial Policy When Domestic Markets are Incomplete”. Canadian Journal of Economics. V.18-#2, pp. 258-272.

 

J. Cassing, A.L. Hillman and N.V.Long (1986). “Risk Aversion, Terms of Trade Uncertainty and Social Consensus Trade Policy”. Oxford Economic Papers. V.38-#?, pp. 234-242.

 

D. DeMeza (1987). “The Optimal Tariff and Quota when Terms of Trade are Random”. Oxford Economic Papers; V39-#?, pp. 412-417.

 

R. Fernandez and D. Rodrik (1991). “Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty”. American Economic Review; V.81-#5, pp. 1146-1155.

 

S. Lahiri and J. Sheen (1990). “Terms of Trade Vulnerability and National Welfare in a Small Open Economy”. Oxford Economic Papers; V.42-#?, pp. 526-543.

 

O. Shy (1988). “A General Equilibrium Model of Pareto Inferior Trade”. Journal of International Economics; V.25-#?, pp. 143-154.

 

A.L. Hillman, E. Katz and J. Rosenberg (1987). “Workers as Insurance: Anticipated Government Assistance and Factor Demand”. Oxford Economic Papers; V.39-#?, 813-820.

 

A. Dixit (1987). “Trade and Insurance with Moral Hazard”. Journal of International Economics; V.23-#?, pp. 201-220.

 

A. Dixit (1989). “Trade and Insurance with Adverse Selection”. Review of Economic Studies; V.56-#?, pp. 235-248.

 

A.Dixit (1989). “Trade and Insurance with Imperfectly Observed Outcomes”. Quarterly Journal of Economics; V.104-#1, pp. 195-203.

 

R.H. Bates, P. Brock and J. Tiefenthaler (1991). “Risk and Trade Regimes: Another Look”. International Organization; V.45-#1, pp. 1-18.

 

D. Rodrik (1998). “Why Do More Open Economies Have Bigger Governments?”. Journal of Political Economy; V.106-#5, pp. 997-1032.

 

R. Staiger and G. Tabellini (1987). “Distortionary Trade Policy and Excessive Protection”. American Economic Review; V.77-#5, pp.

 

H. Lapan (1988). “The Optimal Tariff, Production Lags, and Time Consistency”. American Economic Review. V.78-#3, pp. 395-401.

 

H. Lapan (1991). “The Optimal Tariff, Time Consistency and Immiserizing Growth in a Large Country”. Journal of International EconomicsI; V.6-#1, pp. 27-39.

 

P. Srivastava (1994). “Nationalizing to Liberalize: Credibility in Trade Liberalization”. Journal of International Economics; V.36-#3/4, pp. 449-465.

 

R. Staiger and G. Tabellini (1989). “Rules and Discretion in Trade Policy”. European Economic Review; V.33-#?, pp. 1265-1277.

 

R. Fischer and T. Prusa (1999). “Contingent Protection as Better Insurance”. NBER Working Paper, #6933.

 

● FDI and Labor Markets

 

■ FDI and Labor Market Outcomes

 

○ Some Theory

 

*R. Brecher and E. Choudhri (1996). “Liberalizing Multinational Investment: The Stolper-Samuelson Question Revisited”. in R. Feenstra, G. Grossman and D. Irwin, eds. The Political Economy of Trade Policy. Cambridge: MIT, pp. 77-88.

 

*R. Feenstra and G. Hanson (1996). “Foreign Investment, Outsourcing and Relative Wages”. in R. Feenstra, G. Grossman and D. Irwin, eds. The Political Economy of Trade Policy. Cambridge: MIT, pp. 89-127.

 

J. Markusen and A. Venables (1999). “Multinational Production, Skilled Labor, and Real Wages”. in R. Baldwin and J. Francois, eds. Dynamic Issues in Commercial Policy Analysis. Cambridge: CUP, pp. 138-172.

 

*J. Markusen and A. Venables (1997). “The Role of Multinational Firms in the Wage-Gap Debate”. Review of International Economics; V.5-#4, pp.435-451.

 

○ Empirics, 1: FDI and Employment

 

T. Horst (1978). “The Impact of American Investments Abroad on US Exports, Imports and Employment”. in W. Dewald, ed. (1978). The Impact of International Trade and Investment on Employment. Washington, DC: US Department of Labor; pp. 139-151.

 

A. Chaudhuri (1983). “American Multinationals and American Employment”, in Kindleberger and Audretsch, pp. 263-277.

 

Little, Jane Sneddon (1986). “The Effects of Foreign Direct Investment on U.S. Employment during Recession and Structural Change”. New England Economic Review; Nov/Dec, pp. 40-48.

 

I. Kravis and R. Lipsey (1993). “The Effect of Multinational Firms' Operations on Their Domestic Employment”. NBER Working Paper, #2760.

 

M. Blomström, G. Fors, and R. Lipsey (1997). “Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden”. EJ; V.107-#445, pp. 1787-1797.

 

R. Lipsey (1999). “Foreign Production by U.S. Firms and Parent Firm Employment”. NBER Working Paper, #7357.

 

S.L. Brainard and D. Riker (1997). “Are Multinationals Exporting US Jobs?”. NBER Working Paper, #5958.

 

Henrik Braconier and Karolina Ekholm (2000). “Swedish Multinationals and Competition from High- and Low-Wage Locations”. RIE, V.8-#3, pp.

 

C. M. Paul and D. Siegel (2000). ‘The Impacts of Technology, Trade and Outsourcing on Employment and Labour Composition”. Scandinavian Journal of Economics, V.103-#2, pp. 241-264.

 

Blomström, Magnus and Ari Kokko (2000). “Outward Investment, Employment and Wages in Swedish Multinationals”. ms: Stockholm School of Economics.

 

Fors, Gunnar and Ari Kokko (2001). “Home Country Effects of FDI: Foreign Production and Structural Change in Home-Country Operations”. in M. Blomström and L. Goldberg, eds. Topics in Empirical International Economics. Chicago: University of Chicago Press/NBER, pp. 137-157.

 

M. Conyon, S. Girma, S. Thompson, and P. Wright (2001). “Do Hostile Mergers Destroy Jobs?”. Journal of Economic Behavior and Organization; V.

 

M. Conyon, S. Girma, S. Thompson, and P. Wright (2001). “The Impact of Mergers and Acquisitions on Company Employment in the UK”. European Economic Review; V.45-#

 

○ Empirics, 2: FDI and Wages

 

R. Frank and R. Freeman (1978). “The Distributional Consequences of Direct Foreign Investment”. in W. Dewald, ed. (1978). The Impact of International Trade and Investment on Employment. Washington, DC: US Department of Labor; pp. 153-170.

 

R. Frank and R. Freeman (1978). Distributional Consequences of Direct Foreign Investment. New York: Academic Press.

 

Kahley, William (1990). “Foreign Investment: What Are the Benefits?”. Regional Science Perspectives; V.20-#1, pp. 152-193.

 

R. Lipsey (1994). “Foreign-owned Firms and US Wages”. NBER Working Paper, #4927.

 

R. Lipsey (1995). “Outward Direct Investment and the U.S. Economy”. in M. Feldstein, J. Hines, R. Hubbard, eds. The Effects of Taxation on Multi-national Corporations. Chicago: University of Chicago Press/NBER, pp. 7-33.

 

Feliciano, Zadia and Robert Lipsey (1999). “Foreign Ownership and Wages in the United States, 1987 - 1992”. NBER Working Paper; #6923.

 

A. Butler and M. Dueker (1999). “Does Foreign Direct Investment Affect Domestic Wage Inequality?”. Journal of International Economics; V.47-#1, pp. 61-89.

 

M. Slaughter (2000). “Production Transfer within Multinational Enterprises and American Wages”. Journal of International Economics; V.50-#2, pp. 449-472.

 

J. Hatzius (2000). “Foreign Direct Investment and Factor Demand Elasticities”. European Economic Review; V.44-#1, pp. 117-143.

 

Head, Keith and John Ries (2000). “Offshore Production and Skill Upgrading by Japanese Manufacturing Firms”. ms: University of British Columbia.

 

Bruno, Giovanni and Anna Falzoni (2000). “Multinational Corporations, Wages and Employment: Do Adjustment Costs Matter?”. CEPR Discussion Paper, #2471.

 

Driffield, Nigel (1999). “Indirect Employment Effects of Foreign Direct Investment into the UK”. Bulletin of Economic Research; V.51-#3, pp. 207-221.

 

Taylor, Karl and Nigel Driffield (2000). “Wage Dispersion and the Role of Multinationals: Evidence from UK Panel Data”. ms: Cardiff Business School, University of Wales.

 

M. Conyon, S. Girma, S. Thompson and P. Wright (1999). ‘The Impact of Foreign Acquisition on Wages and Productivity in the UK”. Centre for Research on Globalisation and Labour Markets Working Paper, #99/08.

 

Girma, Sourafel, David Greenaway, and Katherine Wakelin (2001). “Wages, Productivity and Foreign Ownership in UK Manufacturing”. Scottish Journal of Political Economy,

 

B. Blonigen and M. Slaughter (2000). “U.S. Skill Upgrading and Inward Foreign Direct Investment”. Review of Economics and Statistics; forthcoming.

 

O'Sullivan, Patrick (1993). “An Assessment of Ireland's Export-Led Growth Strategy via Foreign Direct Investment: 1960-1980”. WA; V.129-#1, pp. 139-158.

 

Barry, Frank and John Bradley (1997). “FDI and Trade: The Irish Host-Country Experience”. EJ; V.107-#445, pp. 1798-1811.

 

P. Figini and H. Görg (1999). “Multinational Companies and Wage Inequality in the Host Country: the Case of Ireland”. WA; V.135-#4, pp. 594-612.

 

H. Görg (2000). Multinational Companies and Indirect Employment: Measurement and Evidence”. Applied Economics; V.32-#14, pp. 1809-1818.

 

H. Görg and E. Strobl (2001). “Employment Growth in Irish Manufacturing: The Role of Foreign Multinational and Domestic Firms”. Ms:

 

H. Görg and F. Ruane (2001). “Multinational Companies and Linkages: Panel Data Evidence for the Irish Electronics Sector”. International Review of Economics and Business; V.

 

Faini, Riccardo, et al. (1999). “Importing Jobs and Exporting Firms? On the Wage and Employment Implications of Italian Trade and Foreign Direct Investment Flows”. Giornale degli Economisti e Annali di Economia; V.58-#1, pp. 95-135.

 

■ Fragmentation and Wages


*Feenstra, Robert and Gordon Hanson (1997). “Productivity Measurement and the Impact of Trade and Technology on Wages: Estimates for the US, 1972-1990”. Quarterly Journal of Economics; V.114-#3, pp. 907-940.

 

D. Riker and S.L. Brainard (1997). “U.S. Multinationals and Competition from Low Wage Countries”. NBER Working Paper, #5959.

 

B. Anderton amd P. Brenton (1999). “Outsourcing and Low-Skilled Workers in the UK”. Bulletin of Economic Research; V.51-#4, pp. 267-285.

 

Kaplinsky, Raphael (2000). “Globalisation and Unequalisation: What Can be Learned from Value Chain Analysis”. Journal of Development Studies; V.37-#2, pp. 117-146.

 

Dell’mour, Rene, Peter Egger, Klaus Gugler, Michael Pfaffermayr, and Yvonne Wolfmayr-Schnitzer (2000). “Outsourcing of Austrian Manufacturing to Eastern Countries: Effects on Productivity and the Labor Market”. In S. Arndt, H. Handler, and D. Salvatore, eds. Eastern Enlargement: The Sooner, the Better? Vienna: Austrian Ministry for Economic Affairs, pp. 249-302.

 

Tracy C. Miller (2001). “Impact of Globalization On U.S. Wage Inequality: Implications for Policy”. North American Journal of Economics And Finance; V.12-#3, pp. 219-242.

 

Hartmut Egger and Peter Egger (2001). “Cross-border Sourcing and Outward Processing in EU Manufacturing”. North American Journal of Economics And Finance; V.12-#3, pp. 243-256.

 

Peter Egger, Michael Pfaffermayr, and Yvonne Wolfmayr-Schnitzer (2001). “The International Fragmentation of Austrian Manufacturing: The Effects of Outsourcing on Productivity and Wages”. North American Journal of Economics And Finance; V.12-#3, pp. 257-272.

 

Hartmut Egger and Peter Egger (2003). “Outsourcing and Skill Specific Employment in a Small Economy: Austria After the Fall of the Iron Curtain”. Oxford Economic Papers; V.55-#?, pp. 625-643.

 

Hartmut Egger and Peter Egger (2006). “International Outsourcing and the Productivity of Low-Skilled Labor in the EU”. Economic Inquiry; V.44-#1, pp. 625-643.

 

H. Gorg and A. Hanley (2005). “Labour Demand Effects of International Outsourcing”. International Review of Economics and Finance; V.14-#?, pp. 365-376.

 

M. Falk and B. Koebel (2002). “Outsourcing, Imports and Labour Demand”. Scandinavian Journal of Economics; V.104-#4, pp. 567-586.

 

● International Immigration--Characterization and Labor Market Effect

 

■ Theory of Migration

 

BPS, Chapter 33.

 

Wong, Chapter 14

 

Ethier, Wilfred (1986). “International Trade Theory and International Migration”. in O. Stark, ed. Migration, Human Capital and Development. Greenwich: JAI Press, pp. 27-74.

 

Wong, Kar-yiu (1995). “International Labor Migration”. Chapter 14 of International Trade of Goods and Factor Mobility. Cambridge: MIT Press, pp. 625-664.

 

*Razin, Assaf and Sadka, Efraim (1997). “International Migration and International Trade”. Chapter 15 in M. Rosenzweig and O. Stark, eds. Handbook of Population and Family Economics. Vol. 1B, Amsterdam: North Holland, pp. 851-887.

 

*Venables, Anthony (1999). “Trade Liberalisation and Factor Mobility: An Overview”. in R. Faini, J. deMelo, and K. Zimmermann, eds. Migration: The Controversies and the Evidence. Cambridge: CUP, pp. 23-47. [Comment by A. Sapir follows.]

 

Saint-Paul, Gilles (1999). “Economic Integration, Factor Mobility, and Wage Convergence”. In A. Razin and E. Sadka, ed. The Economics of Globalization: Policy Perspectives from Public Economics. Cambridge: CUP, pp. 313-332.

 

■ Host Country Employment and Wage Effects of Immigration

 

○ Frameworks for Analysis: Trade v. Labor Approaches

 

G. Johnson (1980). “The Labor Market Effects of Immigrants”. Industrial and Labor Relations Review; V.33-#3, pp. 331-341.

 

*G. Johnson (1998). “The Impact of Immigration on Income Distribution Among Minorities”. in D. Hammermesh and F. Bean, eds. Help or Hindrance? The Economic Implications of Immigration for African Americans. New York: Rullell Sage Foundation, pp. 17-50.

 

G. Borjas (1999). “The Economic Analysis of Immigration”. Chapter 28 in O. Ashenfelter and D. Card, eds. Handbook of Labor Economics, Vol. 3A. Amsterdam: North Holland, pp. 1697-1760.

 

*N. Gaston and D. Nelson (2000). “Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle”. Oxford Review of Economic Policy, V.16-#3, pp. 104-114.

 

○ Production Function

 

*J. Grossman (1982). “The Substitutability of Natives and Immigrants in Production”. Review of Economics and Statistics; V.64-#4, pp. 596-603.

 

G. Borjas (1987). “Immigrants, Minorities, and Labor Market Competition”. Industrial and Labor Relations Review; V.40-#3, pp. 382-392.

 

F. Rivera-Batiz and S. Sechzer (1991). “Substitution and Complementarity between Immigrant and Native Labor in the US”. in F. Rivera-Batiz, S. Sechzer and I. Gang, eds. US Immigration Policy Reform in the 1980s. Westport: Praeger, pp. 89-116.

 

*M. Greenwood and G. Hunt (1995). “Economic Effects of Immigrants on Native and Foreign-Born Workers: Complementarity, Substitutability, and Other Channels of Influence”. Southern Economic Journal; V.61-#4, pp. 1076-1097.

 

*M. Greenwood, G. Hunt, U. Kohli (1997). “The Factor-market Consequences of Unskilled Immigration to the United States”. Labour Economics; V.4-#1, pp. 1-28.

 

○ Wage/Employment Regression

 

*J. Altonji and D. Card (1991). "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives". in J. Abowd and R. Freeman, eds. Immigration, Trade and the Labor Market. Chicago: University of Chicago Press/NBER, pp. 201-234.

 

*R. Lalonde an R. Topel (1991). "Labor Market Adjustments to Increased Migration" in J. Abowd and R. Freeman, eds. Immigration, Trade and the Labor Market. Chicago: University of Chicago Press/NBER, pp. 167-199.

 

*D. Card (2001). “Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration”. Journal of Labor Economics; V.19-#1, pp. 22-64.

 

○ Natural Experiments

 

*D. Card (1991). “The Impact of the Mariel Boatlift on the Miami Labor Market”. Industrial and Labor Relations Review; V.43-#2, pp. 245-257.

 

J. Hunt (1992). “The Impact of the 1962 Repatriates from Algeria on the French Labor Market”. Industrial and Labor Relations Review; V.45-#3, pp. 556-572.

 

W. Carrington and P. de Lima (1996). “The Impact of 1970s Repatriates from Africa on the Portugese Labor Market”. Industrial and Labor Relations Review; 49-#2, pp. 330-347.

 

R. Friedberg (2001). “The Impact of Mass Migration on the Israeli Labor Market”. Quarterly Journal of Economics; V.116-#4, pp. 1373-1408.

 

*N. Gandal, G. Hanson and M. Slaughter (2000). “Technology, Trade and Adjustment to Immigration in Israel”. NBER Working Paper; #7962.

 

B. Meyer (1995). “Natural and Quasi-Experiments in Economics”. Journal of Business and Economic Statistics; V.13-#2, pp. 151-161.

 

M. Rosenzweig and K. Wolpin (2000). “Natural ‘Natural Experiments’ in Economics”. Journal of Economic Literature; V.38-#4, pp. 827-874.