T.N. Srinivasan and Vani Archana INTRODUCTION The standard models of international trade such as the Ricardian, Hecksher-OhlinSamulelson (HOS) and specific factor models focus on explaining the commodity patterns of trade between countries and their determinants primarily comparative advantage. Constant returns to scale in production are assumed to prevail so that the structure of production in...

The services sector is the next frontier in trade liberalization, and progress in this area is likely to bring enormous economic gain to developed and developing economies. A major impediment to services trade liberaliza­ tion, however, is the lack of rigorous analytical work on its potential impact. Our aim in this paper is to propel the policy relevant research forward. Restrictions on servic...

Firstly we shall introduce the development situation of China’s textile industry from international trade perspective, and then analyze the current international trade competition focusing on international trade barriers which consist of tariff and non-tariff barriers respectively. Finally we propose that increasing non-tariff barriers to China’s textile exportation are due to lower tariff, tra...

The 21”’ century continues a trend of rapid growth in both international trade of forest products and a concern for forests. These two trends are connected. Forces causing trade growth are linked to the loss of native forest resources in some countries and the accumulation of nonnative forest resources in other countries. Factors increasing trade include relaxation of trade barriers, income gro...

______________________________________________________________________ The growth in the trade share of output is one of the most important features of the world economy since World War II. We show that an important propagation mechanism for this growth is vertical specialization. Simply put, vertical specialization occurs when imported inputs are used to produce goods that are then exported. W...

This paper develops a simple network model to describe the dynamic of the intensive and extensive margin of international trade flows. The result is achieved by means of the combination of two mechanisms of proportional growth: the first (discrete) determines the formation of trade links, the second (continuous) governs trade intensity. We show that our setup is able to simultaneously match a l...

This paper examines the response of U.S. manufacturing industries and plants to changes in trade costs using a unique new dataset on industry-level tariff and transportation rates. Our results lend support to recent heterogeneous-firm models of international trade that predict a reallocation of economic activity towards high-productivity firms as trade costs fall. We find that industries experi...