Imperfect Competition and International Trade

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MIT Press, 1992 - 387 pages
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The last decade has seen an important extension of the theory of international trade to include imperfectly competitive market structures. This book collects 19 of the most influential articles on trade with imperfect competition, providing ready access to current research by top-level economists.Following an introduction. by Grossman that surveys the literature, the readings cover such important topics as the causes and consequences of intraindustry trade, the effects of tariffs and quantitative restrictions in oligopolistic settings, the welfare consequences of strategic trade policies, the raison d'Ítre for multinational corporations, the determinants of innovation, and the interaction between technological progress and trade.The recent work on trade incorporating imperfect competition can help to explain the high volume of intraindustry trade between similarly endowed countries and can account for the increasing importance of multinational corporations in the conduct of international trade. It can predict the emergence of cross-country technology gaps and can help to identify the determinants of dynamic comparative advantage. The explorations of trade with imperfect competition have also deepened substantially our understanding of the costs and benefits of trade policy. We now know why governments may be motivated to assist their national firms in global oligopolistic competitions, and we also know the limitations of the arguments in support of strategic trade policies.Gene M. Grossman is Professor of Economics and International Affairs at Princeton University.Contributors: Richard E. Baldwin, James A. Brander, Avinash K. Dixit, Jonathan Eaton, Wilfred J. Ethier, Gene M. Grossman, Elhanan Helpman, Kala Krishna, Paul R. Krugman, James R. Markusen, Victor Norman, Luis A. Rivera-Batiz, Paul M. Romer, Barbara J. Spencer, Anthony J. Venables Shmuel Ben Zvi.

 

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Contents

Introduction
1
MONOPOLISTIC COMPETITION
2
A Reciprocal Dumping Model of International Trade
23
Trade and the Gains from Trade with Imperfect Competition
55
International Competition
75
Tariff Protection and Imperfect Competition
107
Optimal Trade and Industrial Policy under Oligopoly
121
Optimal Trade and Industrial Policies for the U S Automobile Industry
157
Product Differentiation and Intraindustry Trade
217
National and International Returns to Scale in the Modern
261
Multinational Corporations and Trade Structure
285
The Multinational Firm
303
Product Development and International Trade
327
Economic Integration and Endogenous Growth
347
A Model of Quality Competition and Dynamic Comparative Advantage
367
Name Index
385

A Simulation Study
179
Scale Economies Product Differentiation and the Pattern of Trade
203

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About the author (1992)

Gene M. Grossman is Jacob Viner Professor of International Economics and Director of the International Economics Section at Princeton University.

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