International Economies of Scale and the Gains from Trade

In this paper, we present a two-country trade model with external economies of scale that emerge on an international level but are partially localized in each country. First, we show that the larger country exports the good produced in an industry with external economies of scale in the trading equilibrium. Second, we investigate the welfare effects of trade for the following two cases: (I) the case where external economies are completely localized in autarky; (II) the case where external economies are internationally effective in autarky. In case (II), it is shown that trade can be welfare-decreasing for both countries.     

国际贸易的内生化新体系:新兴古典贸易理论

新兴古典经济学派从消费者与生产者的统一出发,构建了贸易产生的内生化新体系。该体系拓展了国际贸易的新理论建构,以专业化与分工为基础,引进外生交易费用、内生交易费用、市场组织与层系等参数,可使得国际贸易在经济中的产生内生化,并由此形式化贸易的发展历程,为国内贸易与国际贸易建立统一的基础,克服以新古典经济学为框架的传统国际贸易理论中国际贸易与国内贸易具有不同基础的理论困难,提供了国际贸易理论的全新思路,对21世纪全球市场的形成与发展具有重要的启示意义。     

Domestic Trade and Transport Costs in International Trade Theory

This paper examines the effects that domestic trade and transport margins have on international trade and the consequences for the central trade theorems. Specifically, the Heckscher-Ohlin-Samuelson model is expanded to include a third industry that produces the nontraded domestic services in transportation, warehousing, wholesaling and retailing required to market goods to final purchasers. It is found that the domestic margins probably impose substantial natural trade barriers and that they can cause the central trade theorems (factor-price equalization, Stolper-Samuelson, and Rybczynski) to fail. [F11]     

Recycling and International Trade Theory

Recently recycling and the production of secondary materials have increased in many countries. However, there is little analysis examining the effects of recycling on comparative advantage, trade, and welfare. In a model with recycling sectors, the author examines whether the Rybczynski theorem is valid, how the price effects are modified, how a recycling subsidy changes the production structure and comparative advantage. It is found that demand has an effect on final goods production and comparative advantage since consumption goods are transformed into recycling inputs.     

Revisiting the Relevance of International Trade Theory

Probably one of the most controversial contributions to the literature of international trade theory was offered by the late social economist John Culbertson. In his view, low wage competition among corporations in a world characterized by capital mobility and massive trade deficits undermines the foundation trade theory based on David Ricardo’s celebrated notion of comparative advantage. Instead, there are several good reasons to believe that international trade with China, India, Vietnam, etc. will be governed by absolute advantage. The current essay is dedicated to the virtually ignored work of Culbertson, and it is meant as an invitation for social economists to critically evaluate the argument and in the process make an attempt to point out where it goes wrong.     

Revisiting the Relevance of International Trade Theory

Probably one of the most controversial contributions to the literature of international trade theory was offered by the late social economist John Culbertson. In his view, low wage competition among corporations in a world characterized by capital mobility and massive trade deficits undermines the foundation trade theory based on David Ricardo’s celebrated notion of comparative advantage. Instead, there are several good reasons to believe that international trade with China, India, Vietnam, etc. will be governed by absolute advantage. The current essay is dedicated to the virtually ignored work of Culbertson, and it is meant as an invitation for social economists to critically evaluate the argument and in the process make an attempt to point out where it goes wrong.

能力经济:一种新的理论假说

从企业的角度，如何评价战略的优劣，这是战略管理研究者的主要任务之一。企业本上是能力的集合体，能力经济决定了企业战略选择。企业能力经济可以包容规模经济和两种不同的范围经济，揭示了企业可持续竞争优势的更深层次的共有来源。     

Survey of International Trade/Economics Textbooks

Fourteen international economics textbooks are reviewed to aid instructors in selecting textbooks for one- and two-semester courses.     

国际贸易理论发展综述

国际贸易理论的发展可大致分为古典、现代、当代和前沿四个阶段，本文对这四个阶段的研究观点予以综述如下。     

Japanese Contributions to the Theory of International Trade

This paper outlines a number of significant Japanese contributions to the theory of international trade in the postwar period, and identifies some of their characteristic topics and methods. It then seeks to explain these characteristics, with reference to Japan's intellectual and cultural heritage, its pressing national priorities, and the situation of the Japanese economist within Japanese society and the economics profession internationally. It is argued that despite these common characteristics we cannot speak meaningfully of a Japanese school of trade theory, although there is a characteristically Japanese approach to trade policy. Finally, some reasons for the neglect of Japanese contributions are explored.
JEL Classification Numbers: B20, F19.     

A Factor Endowment Theory of Endogenous Growth and International Trade

This paper presents a dynamic general equilibrium model of multi‐country, two‐good and two‐factor, in which both long‐run growth and international trade patterns are examined. In each country, government expenditure on a public intermediate good plays a crucial role in the realization of persistent growth. It is shown that the long‐run pattern of international trade is determined in a Heckscher‐Ohlin manner.     

To Trade Or Not To Trade: Economies With A Variable Number Of Tradeables*

We present a general equilibrium model that encompasses the endogenous selection and shadow‐pricing of a set of tradeable commodities, with home‐based and social production activities. In the model, a market system is a set of costly social institutions which embody the trade and production technologies available in the economy. Our equilibrium concept describes the pricing of market institutions, thus pricing the tradeability of a commodity. We obtain the existence and the decentralization of Pareto‐efficient allocations. We discuss an example regarding the transition of a guild‐based economy into a market‐based economy.     

Quantitative Trade Restrictions in Unionized Economies

This paper models the interactions of a labor union and a monopoly firm under an import quota in a small open economy. The distorted equilibrium is depicted in a diagram, in which wages and employment in both sectors, and the monopoly rent, can be identified. The imposition of an import quota in the unionized sector reduces monopoly rent, union employment, and wages in both sectors, compared with the case of autarky. In addition, the paper presents several surprising comparative statics results. For instance, an increase in the world price causes the protected (i.e., "wrong") sector to shrink, wages to decrease, and national income to rise if the initial world price is low.     

Is International Trade More Beneficial to Lower Income Economies? An Empirical Inquiry

Does the effect of international trade on income growth depend on the economy’s level of development? More specifically, is trade more beneficial to lower income economies? Does trade contribute to a smaller international income inequality? The present paper seeks to answer these questions by employing the empirical model of Frankel and Romer (1999 ), which shows trade increases income growth in a cross section of 150 countries. We find evidence in support of the hypothesis that international trade benefits the lower income economies more than it benefits the higher income economies. This finding is robust in the presence of control variables including distance from the equator and institutional quality.     

External Scale Economies in Turkish Manufacturing Industries

In this study, the relationship between external scale economies (agglomeration economies) and productivity is measured by using Turkish data. The productivity increase can be due to economies from locating closer to other firms in either the same industry (localisation economies) or different industries (urbanisation economies). Localisation economies are proxied by own industry size and urbanisation economies by city population. Productivity (output per worker) is regressed on industry size, city population, and other related variables. A measure of concentration of state enterprises is included in the regressions to control for the possible inefficiencies in public sector firms. The functional form of the estimating equations is derived from the translog production function. As a check, a constant elasticity of substitution (CES) form is also experimented with. Data are cross-section data and come from industrial and production surveys conducted by the State Institute of Statistics of Turkey in 1985. The study finds that agglomeration economies that are robust across different specifications of the agglomeration economy function and production function exist in food products, textiles, and wood products. Urbanisation economies are detected in food products and textiles. In wood products there are localisation economies.     

External Debt and Growth in Emerging Economies

The paper studies the relationship between external debt and economic growth in a panel of emerging countries. A number of economists have proposed different methods of analysing the nexus between economic growth and public debt. The paper investigates the debt-growth nexus using a linear and non-linear specification, employing a panel ARDL model on 13 emerging countries during the period 1990–2016. The results show that there is no robust effect of debt on economic growth in the long run; however in the short run, external debt is negatively and significantly correlated to economic growth.     

Endogenous Market Structures and International Trade: Theory and Evidence

Under constant elasticity of substitution (CES) preferences and Cournot (or Bertrand) competition, a larger market induces exits of domestic firms, lower prices, and larger production of surviving firms because of competition from more foreign firms, even without resorting to the selection effects of Melitz. The elasticity of the number of firms to population decreases with substitutability between goods, and it reaches 0.5 under Cournot competition with homogeneous goods: empirical evidence supports this structural relation against the unitary elasticity of monopolistic competition. The results hold also in a Heckscher–Ohlin model with imperfect competition generating inter‐ and intra‐industry trade due to comparative advantage or comparative preferences.