International Trade: Theory and Economic Policy

International Trade Theory and Policy: A Review of the Literature

Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public...

International Trade and Economic Catch-up

International trade specialisation reflects differences in relative factor productivity and endowments, economies of scale or specific advantages of firms and it can have a significant impact on economic growth. We focus in this paper on trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria – EEC-2) vis-à-vis the EU member states (EU-25). Specifically, we are int...

Global economic inequality and international trade

Industrial Dynamics, International Trade, and Economic Growth

This paper presents a dynamic general equilibrium model to illustrate how international trade and dynamic trade policies a¤ect industrialization, industrial upgrading, and economic growth in a two-country world, where there is an in…nite number of possible industries di¤erent in their capital intensities. Analytical solutions are obtained to fully characterize the endowment-driven industrializa...

International Trade Policy towards Monopoly and Oligopoly

This paper highlights the importance of product differentiation and endogenous r&d in determining the optimal r&d policy, in a model where investment in cost reducing r&d is committed before firms compete in a differentiated-goods third-country export market. R&D is always taxed in oligopolies for high degrees of product differentiation. For lower degrees of product differentiation the duopoly ...