International Trade Theory

Author: (USA) Dixit A.K. (USA) Norman R.
Publisher:
Publish Date: 2005-01-01
Features: The trade theory elaborated in this book emphasizes that trade equilibrium is a general equilibrium rather than a local equilibrium, and such equilibrium can typically be modeled using dual functions or envelope functions. This analysis forms a concise and streamlined treatment of standard trade theory, clarifies certain fallacies in previous trade theories, and introduces new insights. The book is particularly significant for the following reasons: (1) it provides a unified analysis of comparative statics and welfare; (2) it emphasizes the issue of factor price equalization; (3) it examines both the general Heckscher-Ohlin model and the model of specialized factors while exploring the general Heckscher-Ohlin model; (4) it analyzes international balance of payments theory within the framework of general equilibrium with floating and fixed prices; (5) it investigates issues of imperfect competition and intra-industry trade.