First published in 1981, this book provides a systematic treatment of the introduction of non-traded and non-competitive intermediate goods in the pure theory of international trade. It presents several well-known propositions in the theory of international trade in terms of some simple and instructive geometry. It also integrates several important insights and author research, providing a thorough survey of the literature in this field. This book has two parts. Part One provides a simple geometric treatment of a model of international trade with non-traded goods, a discussion of well-known propositions, for example Rybczynski and Stolper-Samuelson theorems. Part Two provides an elegant four quadrant diagram to analyse the role of non-competitive intermediate goods in the real theory of trade and several major propositions including theorems on gains from trade and tariff are discussed using this diagram in a first best and distortionary framework.
Preface; Non-Traded Goods and the Pure Theory of International Trade 1. A Simple Geometrical Treatment of Non-Traded Goods in the Pure Theory of International Trade 2. Non-Traded Goods in the Hecksher Ohlin Theory Framework and Some Propositions in Trade Theory 3. Some Results in Positive and Normative Trade Theory with a Distortionary Wage Differential 4. Theorems on Gains from Trade in the Framework of Non-Traded Goods and Market Imperfections Intermediate Goods and the Pure Theory of International Trade 5. Intermediate Goods – An Introduction to Traded Intermediate Goods in the Theory of Trade via Simple Geometry 6. Export Constraints in a Two Sector Model with an Imported Intermediate Good 7. Non-Competitive Imported Intermediate Goods, Non-Traded Goods, Factor Accumulation, Terms of Trade and Welfare 8. Pure Non-Traded Intermediate Goods, Inter-Industry Flows and the Pure Theory of International Trade: An Apology for ‘An Unwritten Chapter’; Author Index; Subject index
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