Iowa State University International Trade Theory (Econ 655) Fall 2002

Transcription

1 Iowa State University International Trade Theory (Econ 655) Fall 2002 Instructor: Harvey Lapan Prerequisites: Economics 603 Course Requirements: The course grade will be based on an (optional) midterm exam, a final exam, and a paper. The paper is worth 35% of the grade. For those who take both exams, the midterm will be worth 25% and the final 40% of the grade, while for those who take only the final, it will be worth 65% of the grade. The paper topic must be discussed with me before Thanksgiving break, and a detailed outline of the paper must be turned in by the end of classes. Required Text: Dixit and Norman, Theory of International Trade, Cambridge U. Press, [DN] Recommended Text & Readings: Bhagwati, Panagariya and Srinivasan, Lectures on International Trade, MIT Press, [BPS] Bhagwati, ed., International Trade: Selected Readings, 2nd edn., MIT Press, [B] Grossman, ed., Imperfect Competition and International Trade, MIT Press, [G] Jones & Kenen, eds., Handbook of International Economics, North-Holland, 1988 (paper); Vol. 1. [JK] Wong, Kar-yiu, International Trade in Goods and Factor Mobility, MIT Press, [1997] Several Readings come from each of the following (which are surveys, collections of articles, etc): Greenway & Winters, Surveys in International Trade, Blackwell, [GW] Grossman & Rogoff, Handbook of International Economics, North-Holland, 1995 (hardback); Vol 3. [GR] Helpman & Krugman, Market Sturcture and Foreign Trade, MIT Press, 1985, [HK1] Helpman & Krugman, Trade Policy and Market Structure, MIT Press, 1989, [HK2] Helpman & Razin, International Trade and Trade Policy, MIT Press, 1991 [HR] Krugman, Rethinking International Trade, MIT Press, [K] Krugman & Obstfeld, International Economics: Theory and Policy, Harper-Collins, 1994 [KO] (or some other undergraduate text may prove a useful reference). Grossman and Helpman, Innovation and Growth in the Global Economy, MIT Press, [GH] Note: For those wishing more details on any topic, the two Handbooks contain extensive references in each chapter. Purpose of the Course: The purpose of this course is to acquaint students with the basic tools and propositions of international trade theory. There is no way that we can cover all of the material of the discipline in a single semester (many schools have a two semester sequence). The reading list is meant to indicate some of the more important topics in the area, and provide you with readings should you be interested in pursuing one of these topics as a course paper.

2 (Starred readings are required; at least some of the others should be read). I. Introduction *1) DN, Chs ) Krugman-Obstfeld, Chs. 1-5 II. III. IV. Trade and Welfare: The Gains from Trade *1) DN, Ch. 4 *2) Corden, Ch. 2 in Handbook, Vol. 1. [JK] 3) BPS book, Chs ) Dixit and Norman, "The gains from trade without lump-sum compensation," JIE, Aug. 1986, ) Smith, M.A.M., Intertemporal Gains from Trade, JIE, ) Grossman, G.M., The Gains from International Factor Movements, JIE, 1984 The Ricardian Model of Comparative Advantage *1) BPS, Chs *2) Dornbusch, Fischer and Samuelson, "Comparative Advantage, Trade and Payments in a Ricardian Model with a Continuum of Goods," AER, 12/77, ) Deardorff, "The General Validity of the Law of Comparative Advantage," JPE 1980, The Heckscher-Ohlin-Samuelson Model: Trade and Factor Prices *1) DN, Ch. 4. *2) [JK] Handbook of International Economics, Vol. 1, Ch. 1, pp *3) Mussa, "The Two Sector Model in Terms of its Dual; A Geometric Exposition," JIE, 11/79, (in Bhagwati Readings, MIT, Ch. 4). 4) Wong, Chapter 2. 5) Dornbusch, Fischer and Samuelson, Heckscher-Ohlin Theory with a Continuum of Goods, QJE, Sept. 1980, ) Deardorff, A., The General Validity of the Heckscher-Ohlin Theorem, AER, Sept. 1982, ) HK1, Ch 8) BPS, Chs. 5-6, V. Extensions of the H-O Model and Alternative Trade Theories A. Specific Factors *1) BPS, Ch. 7 *2) Mayer, "Short-Run and Long-Run Equilibrium for a Small Open Economy," JPE, 1974, *3) Mussa, Dynamic Adjustment in the Heckscher-Ohlin-Samuelson Model, JPE, 1978, ) Neary, "Short-run Capital Specificity and the Pure Theory of International Trade," EJ, 1978, (Bhagwati readings, Ch. 5). B. Technological Differences *1) Findlay and Grubert, "Factor-Intensity, Technological Progress and the Terms of Trade," OEP 1959, ) Markusen and Svensson, Trade in Goods and Factors with International Differences in Technology, IER, Feb. 1985, C. Higher Dimensional Issues *1) Ethier, Ch. 3, in Handbook, Vol. 1. [JK] *2) Deardorff, "Weak Links in the Chain of Comparative Advantage," JIE, 5/79, (in Bhagwati Readings, Ch. 7). 3) Wong, Chapter 2. 4) BPS, Ch.8 5) Neary, P.J., Two-by-Two International Trade Theory with Many Goods and Factors, EMA, 1985,

3 6) Deardorff and Staiger, An Interpretation of the Factor Content of Trade, JIE, 2/88, ) Krugman, Technology, Trade and Factor Prices, JIE, 2/00, D. Nontraded Goods and Intermediate Inputs *1) Ethier, "Nontraded Goods and the H-O Model," IER, 2/72, *2) Batra and Casas, "Intermediate Products and the Pure Theory of International Trade," AER, 6/73, ) Davis, Intra-industry Trade: A Heckscher-Ohlin-Ricardo Approach JIE, Nov. 1995, VI. VII. Empirical Studies *1) Leamer & Levinsohn, Ch. 26 in Handbook, Vol. 3. [GR] *2) Helpman, Elhanan, The Structure of Foreign Trade, JEP, Spring 1999, *3) Trefler, The Case of the Missing Trade and Other HOV Mysteries, AER, Dec. 1995, ) Trefler, D., "Internatonal factor price differences: Leontief was right!", JPE, 12/1993, ) Baldwin, "Determinants of the Commodity Structure of U.S. Trade," AER, 3/71. 6) Bowen, Leamer & Sveikauskas, "Multicountry, Multifactor Tests of Factor Abundance Theory, AER, 12/87, ) Leamer, "The Leontief paradox reconsidered," JPE 1980, Ch. 8 in Bhagwati readings. 8) Leontief, "Factor Proportions and the Structure of American Trade," ReStat, 1956, ) Stern, R.M., British and American Productivity and Comparative Costs in International Trade, OEP, October 1962, ) Davis, Weinstein, Bradford and Shimpo, Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works, AER, June 1997, ) Deardorff, Ch. 10, in Handbook, Vol. 1. [JK] Trade Patterns: Scale Economies and Imperfect Competition A. Surveys *1) Helpman, Ch. 7 in Handbook, Vol. 1, [JK]. *2) Krugman, Ch. 24 in Handbook, Vol 3. [GR]. 3) Smith, A., Imperfect Competition and international trade, in [GW] B. External Economies *1) HK1 - Market Structure & Foreign Trade - Ch 3 *2) Ethier, Decreasing costs in international Trade and Frank Graham s argument for protection, EMA, 1982., ) Wong, Chapter 5. 4) Ethier, Internationally decreasing costs and world trade, JIE, 1979, ) Panagariya, Variable returns to scale and patterns of specialization, AER, C. Oligopoly *1) HK1, Ch 5 Market Structure and Foreign Trade. *2) Krugman, Industrial organization and international trade, Ch. 20, in Schmalansee and Willig, eds., Handbook of Industrial Organization, Vol. 2, 1989 (& Ch. 14 in [K].) *3) Brander & Krugman, A Recirpocal dumping model of international trade, JIE 1983; Ch 1 in [G]. 4) Ben-Zvi and Helpman, Oligopoly in Segmented Markets, Ch. 2 in [G] 5) Ethier, National and international returns to scale and the modern theory of international trade, AER, 1982, pp & Ch 14 in [G]. D. Monopolistic Competition *1) HK1, Ch *2) Krugman and Venables, Globalization and the Inequality of Nations, QJE, Nov. 1995, *3) Helpman, "International Trade in the Presence of Product Differentiation, Economies of Scale and Monopolistic Competition: A Chamberlain-Heckscher-Ohlin Approach" JIE, 8/81, , & Ch. 13 in [G]. 3

4 4) Ethier, National and international returns to scale and the modern theory of international trade, AER, 1982, & Ch 14 in [G]. 5) Krugman, Intraindustry specialization and the gains from trade, JPE, 1981, ; Ch. 3 in [K] 6) Krugman, "Increasing Returns, Monopolistic Competition and International Trade," JIE, 11/79, (Ch. 9 in [B]). 7) Wong, Chapters 6-7. VIII. The Theory of Commercial Policy - Perfect Competition A. Tariffs, Commodity and Factor Prices, and Welfare *1) BPS book, Ch12 *2) DN, Ch ) Anderson, "The Theory of Protection", Ch. 5 in [GW] Survey in International Trade. 4) Helpman & Krugman, Chs. 1-4 (HK2) 5) Vousden, The Economics of Trade Protection, Cambridge U. Press. B. Empirical Studies *1) Feenstra, Ch. 30, in Handbook, Vol. 3., [GR] 2) Hufbauer & Elliott, Measuring the Cost of Protection in the United States, Institute for International Economics (IIE), ) Crandall, "The Effects of U.S. Trade Protection for Autos and Steel," Brookings Papers on Economic Activity, 1987, ) Grossman, "Imports as a Cause of Injury," JIE, 5/1986, ) Anderson, J., A New Approach to Evaluating Trade Policy, RES, Jan. 1996, ) Anderson, J., The Relative Inefficiency of Quotas, MIT Press. C. Optimal Tariffs and Retaliation: Large Country Case *1) BPS book, Chs ) Johnson, Optimum Tariffs and Retaliation, RES, , ) Lapan, The Optimal Tariff, Production Lags and Time Consistency, AER, 6/ ) Maskin and Newbery, Disadvantageous Oil Tariffs and Dynamic Consistency, AER, 3/90, D. The (Non-)Equivalence of Tariffs and Quotas: Deterministic Models *1) BPS, Ch ) Fishelson and Hillman, "Domestic Monopoly and Redundant Tariff Protection," JIE, 2/79, ) Rodriquez, The Non-Equivalence of Tariffs and Quotas under Retaliation," JIE, 11/74, (in Bhagwati Readings, MIT, Ch. 13). 4) Tower, The Optimum Quota and Retaliation, RES, 1975, E. Quotas, Tariffs & Quality *1) Falvey, "The Composition of Trade Within Import-Restricted Product Categories," JPE, 1979, ) Aw and Roberts, "Measuring Quality Change in Quota-Constrained Import Markets: The Case of U.S. Footwear," JIE, 1986, ) Feenstra, "Quality Change under trade restraints: theory and evidence from Japaneses autos," QJE, ) Bond, "Optimal Commercial Policy with Quality-Differentiated Products," JIE, 1988, ) Krishna, "Tariffs vs. Quotas with Endogeneous Quality," JIE, 8/87, F. Quotas, Tariffs and Uncertainty *1) Pelcovitis, "Quotas vs. Tariffs under Uncertainty," JIE, 11/76, ) Young & Anderson, "Risk Aversion and Optimal Trade Restrictions," RES, 4/82, ) Young, "Ranking Optimal Tariffs and Quotas for a Large Country under Uncertainty," JIE 5/79,

5 4) Choi and Lapan, Optimal Trade Policies for a Developing Country under Uncertainty, JDE, 1991, IX. Theory of Effective Protection *1) BPS book, Ch. 15. *2) Corden, "The Structure of a Tariff System and the Effective Protective Rate," JPE, *3) Bhagwati and Srinivasan, "The General Equilibrium Theory of Effective Protection and Resource Allocation," JIE, 8/73, ) Krueger, Ch. 11, Sections 3-4, in Handbook, Vol. 1 [JK] 5) Balassa, "Tariff Protection in Industrial Countries: An Evaluation," JPE, 12/65, ) Basevi, "The U.S. Tariff Structures: Estimate of Effective Rates of Protection of U.S. Industries," RESTAT, 1966, ) Ethier, The theory of effective protection in general equilibrium, CJE, X. Domestic Distortions and Commercial Policy *1) BPS, Chs *2) Johnson, "Optimal Trade Intervention in the Presence of Domestic Distortions," in Bhagwati Readings, MIT, Ch. 15. *3) Bhagwati and Srinivasan, "Optimal Intervention to Achieve Non-Economic Objectives," RES, 1/69, *4) Bhagwati, "The Generalized Theory of Distortions and Welfare," in Bhagwati Readings, MIT, Ch ) Lapan, "International Trade, Factor Market Distortions and the Optimal Dynamic Subsidy," AER, 6/76, ) Bhagwati and Srinivasan, On Reanalysing the Harris-Todaro Model: Policy Rankings in the Case of Sector-Specific Sticky Wages, AER, June ) Rodrik, D., Policy targeting with endogenous distortions: theory of optimum subsidy revisited, QJE, 11/87, ) Dixit, Tax Policies in Open Economies, in Auerbach and Feldstein, eds., Handbook of Public Economics, ) Wong, Chapter 910. A. Infant Industry Argument for Protection *1) Baldwin, "The Case Against Infant-Industry Protection," JPE, 5/69. *2) Grossman, G.M. and H. Horn, Infant-industry Protection Reconsidered: The Case of Informational Barriers to Entry, QJE, 1988, ) Bagwell and Staiger, The role of export subsidies when product quality is unknown, JIE, 8/1989, B. Piecemeal Policy Reform *1) Anderson and Neary, "Trade Reform with Quotas, Partial Rent Retention and Tariffs", EMA, 1/92, *2) BPS, Chs. 31 & 39 3) Beghin and Karp, "Tariff Reform in the Presence of Sector-Specific Distortions", CJE, 1992, ) Bertrand and Vanek, "The Theory of Tariffs, Taxes and Subsidies: Some Aspects of the Second Best", AER, 1971, ) Falvey, "Tariffs, Quotas and Piecemeal Policy Reform", JIE, 1988, XI. Political Economy of Protectionism *1) Baldwin, Ch. 12 in Handbook, Vol 1 [JK]. *2) Rodrik, Ch. 28 in Handbook, Vol 3 [GR]. *3) Grossman and Helpman, The Politics of Free Trade Agreements, AER, Sept. 1995, *4) Krueger, "The Political Economy of the Rent-Seeking Society," AER, 6/74, ([B], Ch. 17) 5) Hillman, The Political Economy of Protection, 1989, Chs. 1-4, 6. 5

6 6) Grossman and Helpman, "Protection for Sale", AER, Sept. 1994, ) Trefler, D., "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," JPE, Feb. 1993, ) Mayer, W., "Endogenous tariff formation," AER, 1984, in Bhagwati readings, Ch ) Bhagwati, "Directly-unproductive profit-seeking (DUP) activities: A welfare-theoretic synthesis and generalization," JPE, 1982, ) Bhagwati and Srinivasan, "Revenue Seeking: A Generalization of the Theory of Tariffs," JPE, 12/80, ) Staiger and Tabellini, "Discretionary Trade Policy and Excessive Protection," AER, 1987, XII. XIII. XIV. Theory of Customs Union *1) Lipsey, "The Theory of Customs Unions: A General Survey," EJ, 1960, ; Ch. 20 in [B]. *2) Kemp and Wan, "An Elementary Proposition Concerning the Formation of Customs Unions," (Ch. 21 in [B]), JIE, *3) Richard E. Baldwin & A. J. Venables, Ch. 31 in Handbook [GR], Vol. 3. *4) Krugman, "Is Bilateralism Bad?" Ch. 1 in Helpman-Razin [HR]. 5) Bhagwati, "Trade Diverting Customs Unions and Welfare Improvement," EJ, 9/71, ) Lloyd, "3x3 Theory of Customs Unions," JIE, 1982, ) Bagwell and Staiger, Multilateral Tariff Cooperation during the Formation of Custom Unions, JIE, Feb. 1997, ) Levy, A Political Economy Analysis of Free Trade Agreements, AER, Sept. 1997, ) Krishna, P., Regionalism and Multilateralism, QJE, Feb. 1998, ) Corden, Economies of Scale and Customs Union Theory, JPE, Strategic Trade Policy *1) Helpman & Krugman, [HK2] Trade Policy and Market Structure, Ch *2) Brander, Ch. 27 in Handbook, Vol. 3. [GR]. *3) Brander and Spencer, "Export Subsidies and International Market Share Rivalry," JIE, 1985, *4) Dixit and Kyle, The Use of Protection and Subsidies for Entry Promotion and Deterrence, AER, March 1985, *5) Krishna, Trade Restrictions as Facilitating Practices, JIE, May 1989, & Ch. 5 in [G]. *6) Eaton and Grossman, Optimal Trade and Industrial Policy under Oligopoly, QJE, 1986, , {Ch 7 in [G]} 7) Spencer and Brander, International R&D Rivalry and International Strategy, RES, 1983, ) Brander and Spencer, Tariffs and Extraction of Foreign Monopoly Rents under Potential Entry, CJE, 1981, ) Krugman, Import Protection as Export Promotion: International Competition in the Presence of Oligopoly and Economies of Scale, Ch. 4 in [G]. 10) Brander and Spencer, Tariff Protection and Imperfect Competition, Ch. 6 in [G]. 11) Markusen and Venables, Trade Policy with Increasing Returns and Imperfect Competition: Contradictory Results from Competing Assumptions, JIE 5/88, & Ch. 8 in [G]. 12) Dixit and Grossman, Targeted Export Promotion with Several Oligopolistic Industries, JIE, 11/86, ) Das and Donnenfeld, Trade Policy and Its Impact on the Quality of Imports: A Welfare Analysis, JIE, August 1987, ) Romer, P., New Goods, Old Theory and the Welfare Costs of Trade Restrictions, JDE, Feb. 1994, ) Wong, Chapter 12. Empirical Studies of Imperfect Competition *1) Smith, A., and Venables, A.J., Completing the Internal Market in the European Community: Some Industry Simulations, EER, Sept. 1988, ) Feenstra, The gains from trade in differentiated products: Japanese compact trucks, in Feenstra, ed., Empirical Methods for International Trade,

7 3) Helpman, Imperfect competition and international trade: Evidence from fourteen industrial countries, Journal of the Japanese and International Economies, 1987, ) Saxonhouse, Differentiated Products, economies of scale, and access to the Japanese market, in Feenstra, ed., Trade Policies for International Competitiveness, ) Bulow, Geanakoplos, and Klemperer, Multimarket oligopoly: Strategic substitutes and complements, JPE, 1985, ) Dixit, Optimal Trade and Industrial Policies for the U.S. Automobile Industry, in Feenstra, ed., Empirical Methods for International Trade, MIT Press, 1988, & Ch. 9 in [G]. 7) Baldwin, Richard and Krugman, Market Access and International Competition: A Simulation Study of 16K Random Access Memories, in Feenstra, ed., Empirical Methods for International Trade, MIT Press, 1988, & Ch. 10 in [G]. XV. XVI. XVII. Multinational Corporations *1) HK1, Chapters *2) Markusen, The boundaries of multinational enterprises and the theory of international trade, JEP, Spring, 1995, ) Ethier, The Multinational Firm, QJE, 1986, reprinted in [G], Ch ) Helpman, Multinational Corporations and Trade Structure, RES, 1986, reprinted n [G], Ch ) Ethier and Markusen, Multinational Firms, Technology Diffusion and Trade, JIE, August 1996, ) Hummels, D. and J. Levinsohn, Monopolistic Competition and International Trade: Reconsidering the Evidence, QJE, August 1995, ) Helpman, Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries, JJIE, 1987, ) Brainard, An Empirical Assessment of the Proximity-Concentration Tradeoff between Multinational Sales and Trade, AER, Sept. 1997, ) Markusen, Multinationals, Multi-Plant Economies, and the Gains from Trade, JIE, 5/84, ; Ch. 28 in [B]. 10) Horstmann and Markusen, Licensing versus Direct Investment: A Model of Internationalization by the Multinational Enterprise, CJE, ) Wong, Chpater 13. Trade Under Uncertainty *1) BPS, Ch. 39 *2) Helpman and Razin, "Uncertainty and International Trade in the Presence of Stock Markets," RES, 6/78, ) Helpman, Trade patterns under uncertainty with country specific shocks, EMA, May 1988, ) Grossman and Razin, The pattern of trade in a Ricardian model with country specific uncertainty, IER, Feb. 1985, ) Ruffin, "International Trade Under Uncertainty," JIE, 8/74, Trade Policy Under Uncertainty A. Incomplete Risk Markets *1) Helpman and Razin, Efficient Protection under Uncertainty, AER, Sept. 1980, *2) Newbery and Stiglitz, Pareto Inferior Trade, RES, Jan. 1984, ) Eaton and Grossman, Tariffs as Insurance, CJE, May 1985, ) Young and Anderson, The Optimal Policies for Restricting Trade Under Uncertainty, RES, Oct. 1980, ) Helpman and Razin, Welfare Aspects of International Trade in Goods and Securities, QJE, Aug. 1978, ) Young and Anderson, Risk Aversion and Optimal Trade Restrictions, RES, 1982,

8 7) Stockman and Dellas, "Asset Markets, Tariffs and Political Risk," JIE, 1986, ) Barari and Lapan, "Stochastic Trade Policy with Asset Markets: The Role of Tariff Structure," JIE, 11/93, B. Asymmetric Information *1) Dixit, Trade and Insurance with Moral Hazard, JIE, Nov. 1987, *2) Dixit, Trade and Insurance with Adverse Selection, RES, April 1989, ) Dixit, Trade and Insurance with Unobservable Outcomes, QJE, Feb.1989, ) Dixit, Trade Policy with Imperfect Information, in Jones, R.W. and Krueger, A. (eds.), The Political Economy of International Trade, ) Bagwell, Optimal Export Policy for a New-Product Monopoly, AER, Dec. 1991, XVIII. Trade and Growth I *1) Findlay, Ch. 4 in Handbook, [JK], Vol. 1. 2) Smith, Capital Theory and Trade Theory, Ch 6 in Handbook [JK]. 3) Bhagwati, Immiserizing Growth: A Geometric Note, RES, ) Krugman, "A Model of Innovation, Technology Transfer, and the World Distribution of Income," JPE, 1979, in [K], Ch. 9. 5) Krugman, A Technology Gap Model of International Trade, in [K], Ch ) Martin, "Immiserizing Growth for a Tariff-Distorted, Small Economy," JIE, 11/77, ) Brecher and Diaz-Alejandro, "Tariffs, Foreign Capital and Immiserizing Growth," in Bhagwati Readings, Ch ) Grossman and Helpman, "Growth and Welfare in a Small Open Economy, Ch. 8 in [HR]. XIX. XX. Trade and Growth II *1) Grossman & Helpman, Ch. 25 in Handbook [GR] *2) Young, Learning by doing and the dynamic effects of international trade, QJE, May 1991, *3) Taylor, M.S., Quality Ladders and Ricardian Trade, JIE, May 1993, ) Krugman, The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher, JDE 1987, 41-55, reprinted in [K], Ch. 7. 5) GH, chs 3, 4, ) Rivera-Batiz and P. Romer, Economic integration and endogenous growth, QJE, May 1991, (ch. 18 in [G]) 7) Grossman and Helpman, Product Devleopment and International Trade, JPE, Dec. 1989, {also Ch. 17 in [G]} 8) Rivera-Batiz and P. Romer, Itnernational trade and endogenous technological progress, EER, May 1991, ) Brezis, Krugman and Tsiddon, Leapfrogging in international competition, AER, Dec. 1993, ) Grossman and Helpman, Comparative Advantage and Long-Run Growth, AER, Sept. 90, ; Ch. 17 in [G] Dynamics of North-South Trade *1) Flam and Helpman, Vertical Product Differentiation and North-South trade, AER, Dec. 1987, *2) GH, Chs ) Stokey, The Volume and Composition of Trade between Rich and Poor Countries, RES, Jan. 1991, ) Helpman, Innovation, Imitation and Intellectual Property Rights, EMA, Nov. 1993, ) Grossman and Helpman, Quality ladders and Product Cycles, QJE, May 1991, ) Vernon, International investment and international trade in the product cycle, QJE,

9 XXI. XXII. Evidence on R&D, Trade and Growth *1) Coe and Helpman, International R&D Spillovers, EER, May 1995, ) Coe, Helpman and Hoffmaister, North South R&D Spillovers, EJ, Jan. 1997, ) Bernstein and Mohnen, International R&D Spillovers Between US and Japanese R&D Intensive Sectors, JIE, April 1998, ) Engelbrecht, International R&D Spillovers, Human Capital and Productivity in OECD Economics: An Empirical Investigation, EER, August 1997, ) Bayoumi, Coe and Helpman, R&D Spillovers and Global Growth, JIE, April 1999, Factor Movements, Trade and Welfare *1) BPS, Chs *2) Handbook [JK], Ch. 5. 3) Svensson, Factor trade and goods trade, JIE, 5/1984, ) DN, Ch. 5. 5) Ethier, International trade and labor migration, AER, 9/1985, ) Wong, "Are International Trade and Factor Mobility Substitutes," JIE, 8/86, (Ch. 3 in [B]). 7) Cheng and Wong, "On the Strategic Choice Between Capital and Labor Mobility," JIE, 5/90, ) Bhagwati and Brecher, National Welfare in an Open Economy in the Presence of Foreign-Owned Factors of Production, JIE, 2/ 1980, ) Markusen and Svensson, Trade in Goods and Factors with International Differences in Technology, IER, Feb. 1985, ) Wong, Chapter 14. XXIII. Trade, Technology and Wages *1) Davis, R.D., Does European Unemployment Prop Up American Wages?, AER, June 1998, *2) Sachs, J. and H. Shatz, Trade and Jobs in U.S. Manufacturing, BPEA, 1994, ) Lawrence, R. and M. Slaughter, International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup?, BPEA, 1993, XXIV. Miscellaneous Topics A. International Rules and Institutions for Trade Policy 1) Staiger, Ch. 29 in Handbook, Vol. 3 [GR]. 2) Dam, The GATT: Law and International Economic Organization, U. of Chicago Press, ) Bagwell and Staiger, Án Economic Theory of GATT, AER, May 1999, B. Dumping 1) Ethier, "Dumping," JPE, 6/82, ) Davies & McGuinness, "Dumping at Less than Marginal Cost," JIE, 1982, ) Gruenspecht, "Dumping and Dynamic Competition," JIE, 11/88, C. Trade, Natural Resources and the Environment 1) Kemp and van Long, Ch. 8 in Handbook, Vol. 1. [JK]. 2) Copeland, B. R., and M.S. Taylor, North-South trade and the environment, QJE, 1994, ) Copeland and Taylor, Trade and Transboundary Pollution, AER, 1995,

10 Journal Abbreviations: AER - American Economic Review BPEA - Brookings Papers on Economic Activity CJE - Canadian Journal of Economics EER - European Economic Review EJ - Economic Journal EMA - Econometrica IER - International Economic Review JEL - Journal of Economic Literature JDE - Journal of Development Economics JEP - Journal of Economic Perspectives JIE - Journal of International Economics JJIE - Journal of the Japanese and International Economies JPE - Journal of Political Economy OEP - Oxford Economic Papers QJE - Quarterly Journal of Economics RES - Review of Economic Studies RE Stat - Review of Economics and Statistics 10