In recent years, international trade has become a subject of increaed practical importance and also one of the most intellectually exciting parts of economics. In his introduction to this volume, Paul Krugman outlines why this is so, by analysing the original contribution of the New Trade Theory in interpreting and explaining the observed trade behaviour of the past twenty years. Then follow sections which discuss: formal tests of the New Trade Theory, Price Discrimination and Exchange Rate, as well as New Protectionism, measures of Comparative Advantages and Import Demand in industrialized and developing countries. Some chapters also use GCE models to evaluate Trade Protectionism, while others encompass External Trade within aggregate Disequilibrium Models.
Introduction: The new trade theory, ten years old, Paul Krugman. Part 1 Testing the new trade theory: testing an imperfect competition trade model, Matthew R. Lynde; export behaviour with differentiated products, Joaquim Oliviera-Martins. Part 2 Price discrimination and exchange rate "pass-through": exchange rate and import prices - the European car market, Jacques le Cacheux and Lucrezia Reichlin; market structure, producer costs and location - an alternative view of pricing in the European car market, Alan Kirman and Nathalie Schueller. Part 3 New protectionism, trade liberalization in perfect or imperfect competition models: imperfect competition and the Japan-US automobile trade, Junichi Goto; the new protectionism - the welfare effects of simultaneous quantitative restrictions on an exporting country, Bang Nam Jeon. Part 4 Evaluation of trade protectionism with CHE model: a decentralized multisector intertemporal general equilibrium evaluation of Brazil's protectionism, Jean Mercenier and Maria Da Conceicao Sampaio de Souza; the effects on Japanese industrial policy on trade flows and international competitiveness, Hiro Lee. Part 5 Comparative advantages: the measure of "revealed" comparative advantage, Gerard Lafay. Part 6 Import demand in industrialized and developing countries: error correction models for aggregate imports - the case of two small open European economies, Jean-Pierre Urbain; import demand in developing countries, Ricardo Faini et al. Part 7 Disequilibrium models of an open economy: a disequilibrium econometric model of the French economy with traded and non-traded goods, Patrick Artus et al; disequilibrium models and foreign trade - two approaches applied to the French manufacturing sector, Frank Amalric et al.
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