Economic Theory

Advanced International Trade: Theory and Evidence by Robert C. Feenstra

By Robert C. Feenstra

Modern and extremely transparent presentation of the mainstream concept of overseas exchange.

Show description

Read or Download Advanced International Trade: Theory and Evidence PDF

Similar economic theory books

Growth, Distribution and Innovations: Understanding their Interrelations

Inspiration for these learning complicated macroeconomic and written by means of a broadly released writer, this e-book outlines a brand new and extra fruitful manner of realizing, interpreting and officially modelling financial progress. In his sequence of lectures, gathered right here in a single concise and fascinating publication, Amit Bhaduri attracts on modern matters reminiscent of the function of festival coverage, labour industry flexibility and highbrow estate rights regime in influencing the speed of monetary development to caricature another method of mainstream development thought.

Uncertainty in Economic Theory (Routledge Frontiers of Political Economy, 63)

This quantity brings jointly very important papers, coupled with new introductions, within the vastly influential zone of uncertainty in financial thought. Seminal papers can be found jointly for the 1st time in booklet layout, with new introductions and lower than the steely editorship of Itzhak Gilboa - this ebook is an invaluable reference software for economists all around the globe.

The World Economy, Population Growth, and the Global Ecosystem: A Unified Theoretical Model of Interdependent Dynamic Systems

The aim of this examine is to higher comprehend the basic interdependencies among the area economic climate and the worldwide atmosphere, together with human populations. international creation, product costs, wages, rates of interest, alternate premiums, employment, and spending are proven to be collectively decided through the years with the expansion charges of country-specific renewable assets, the iteration of waste, human inhabitants progress, waste assimilation through the fundamental fungible source, and the sanitation and different well-being and human companies supplied by means of the govt sectors.

Kalecki’s Principle of Increasing Risk and Keynesian Economics

Kalecki was once one in every of a big new release of Cambridge economists. the following, Tracy Mott's remarkable booklet examines the connection of Kalecki's economics to diversified fiscal parts and its courting to significant substitute faculties, reminiscent of Keynes and Marx.

Mott appears at Kalecki's 'principle of accelerating threat' and the way it offers the best way the copy and enlargement of wealth can convey a coherent cohesion to financial research. In so doing, it is smart out of the elemental conclusions of Keynesian economics at the underemployment of labour and capital.

Additional info for Advanced International Trade: Theory and Evidence

Example text

Following Leamer (1980), we define capital to be abundant i w i w relative to labor in country i if K /K > L /L . 1) implies that the capital/labor ratio embodied in production for country i exceeds the capital/labor ratio embodied in consumption: i i i i K /L > (K – Fki )/( L – Fli ) . 2), we have K = (K – Fki )/ s and L = (L – Fli )/ s . It follows that i w i i i i i i w i i i i w i w K /K = s K /(K – Fki ) and L /L = s L /(L – Fli ). 3) . QED Feenstra, Advanced International Trade 2-13 i i To interpet this result, note that K and L are simply the endowments of capital and labor, or alternatively, the capital and labor embodied in production.

A If p is also the autarky price in the foreign country, then production must occur at the a tangency between the price line with slope p and the foreign PPF, or at point B’. Notice that from the Rybcynzski Theorem, point B’ must lie above and to the left of point A: the higher capital endowment abroad leads to more of good 2 and less of good 1. The price line through point B’ acts like a budget constraint for the representative consumer in the foreign country, so that the consumer chooses the highest indifference curve on this price line.

The slope of the line between V and AD measures the ratio of factor prices. The theorem of Leamer (1980) states that if country 1 is labor-abundant, as illustrated, then the capital/labor ratio embodied in consumption must exceed the capital/labor ratio i embodied in production. That is, since the consumption point AD must lie on the diagonal, it is i necessary above the endowment point V . While this is graphically obvious, note that it does not depend in any way on whether trade is balanced or not.

Download PDF sample

Rated 4.96 of 5 – based on 40 votes