International Trade Theory
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1 International Trade Theory A critical review Murray C. Kemp Routledge Taylor & Francis Group LONDON AND NEW YORK
2 Contents Acknowledgements Introduction xi xiii PARTI The classical theory of international trade 1 1 The Torrens-Ricardo Principle of Comparative Advantage: an extension 3 Review of International Economics 14 (August 2006), Gottfried Haberler's Principle of Comparative Advantage 16 Asia-Pacific Journal of Accounting and Economics 13 (June 2006), Trade between countries with radically different preferences 25 Economics Bulletin 6 (no. 18, 2005), Production and trade patterns under uncertainty 32 Economic Record 49 (June 1973), WITH NISSAN LIVIATAN PART II The neo-classical theory of international trade 47 5 International trade without autarkic equilibria: macroeconomic implications 49 India Macroeconomics Annual, ,
3 viii Contents 6 Impoverishing technical and preferential improvements 62 Pacific Economic Review 27 (June 2007), WITH GEOFFREY FISHBURN 7 A dynamic Heckscher-Ohlin model: the case of costly factor reallocation 71 Japanese Economic Review 54 (September 2003), A second correspondence principle 88 In A.D. Woodland, ed., Economic Theory and International Trade. Chapters in Honour of Murray C. Kemp, Aldershot: Edward Elgar, 2002 WITH YOSHIO KIMURA AND KOJI SHIMOMURA 9 A theory of involuntary unrequited international transfers 105 Journal of Political Economy 111 (June 2003), A theory of involuntary unrequited international transfers: a reply to Carlos da Costa A theory of voluntary unrequited international transfers 115 Japanese Economic Review 53 (September 2002), Aid tied to the donor's exports 128 Pacific Economic Review 10 (October 2005), Variable returns to scale and factor price equalization 135 In K.J. Arrow, Y.-K. Ng and X. Yang, eds, Increasing Returns and Economic Analysis, London: Macmillan, AND MAKOTO TAWADA 14 Market structure and factor price equalization 138 Japanese Economic Review 49 (September 1998), Factor price equalization when the world equilibrium is not unique 145 Review of Development Economics 5 (June 2001),
4 Contents ix 16 Factor price equalization in a world of many trading countries 151 Review of Development Economics 14 (September 2006), Heckscher-Ohlin theory: has it a future? 153 Singapore Economic Review 47 (October 2002), PART III Normative trade theory On a misconception concerning the classical gains-fromtrade proposition 159 In R. Pethig and M. Rauscher, eds, Challenges to the World Economy: Festschrift for Horst Siebert, Berlin-Heidelberg: Springer-Verlag, Recent challenges to the classical gains-from-trade proposition 161 German Economic Review 3 (November 2002), Trade gains: the end of the road? 165 Singapore Economic Review 50, Special Issue (2005), Tariff reform: some pre-strategic considerations 172 WITH HENRY Y. WAN, JR 22 On the existence of equivalent tariff vectors: when the status quo matters 181 Singapore Economic Review 50, Special Issue (2005), WITH HENRY Y. WAN, JR PART IV Methodology, The representative agent in economic theory 197
5 x Contents 24 Price taking in general equilibrium 199 American Journal of Applied Sciences, Special Issue (December 2005), Generality versus tractability 202 Notes 204 References 212 Index 218
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