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The Economics of Free Trade

Edited by Gary C. Hufbauer, Reginald Jones Senior Fellow, Peterson Institute for International Economics and Kati Suominen, Anderson School of Management, University of California, Los Angeles, US
These two volumes survey the most important scholarly writings in economics and political science that explain the drivers and constraints to freer world trade.
Two volume set
Extent: 1,568 pp
Hardback Price: $868.00 Web: $781.20
Publication Date: 2012
ISBN: 978 1 84064 527 9
Availability: In Stock

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  • Business and Management
  • International Business
  • Economics and Finance
  • International Business
  • International Economics
These two volumes survey the most important scholarly writings in economics and political science that explain the drivers and constraints to freer world trade. This authoritative collection, with contributions by leading academics, includes seminal studies that have changed the course of thinking about international trade over past centuries and considers both pro free trade and anti free trade arguments. Along with an original introduction, the editors have also selected a few non-academic pronouncements that have shaped popular views about free trade. This collection will be of immense value to anyone with an interest in the economics of free trade and will serve as an excellent reference source to students and academics.
59 articles, dating from 1664 to 2011
Contributors include: R. Baldwin, G. Becker, C. Bergsten, J. Bhagwati, G. Grossman, J. Keynes, A. Krueger, P. Krugman, D. Rodrik, J. Sachs

Volume I:


Introduction Gary Hufbauer and Kati Suominen


A Mercantalism
1. Thomas Mun [1664] (1903), ‘The Particular Ways and Means to Encrease the Exportation of our Commodities, and to Decrease our Consumption of Forraign Means’
2. David Hume (1752), ‘Of the Balance of Trade’

B Specialization, Comparative Advantage and Opportunity Cost
3. Adam Smith (1776), ‘Of the Division of Labour’
4. David Ricardo (1817/1821), ‘On Foreign Trade’
5. Gottfried von Haberler (1936), ‘The Transfer Problem’

C Free Trade Ideology
6. C.P. Kindleberger (1975), ‘The Rise of Free Trade in Western Europe, 1820–1875’
7. Douglas A. Irwin (1996), ‘Conclusion: The Past and Future of Free Trade’

D Early Skeptics
8. Alexander Hamilton [1791] (1913), ‘The Facilitating of Pecuniary Remittances from Place to Place’ and ‘The Facilitating of the Transportation of Commodities’
9. R. Torrens [1833] (1958), ‘Letter No. II: To the Editor of the Bolton Chronicle’
10. Frank D. Graham (1923), ‘Some Aspects of Protection Further Considered’
11. James Bristock Brigden (1929), ‘Introduction’
12. John Maynard Keynes (1931), ‘Mitigation by Tariff’

A Factor Proportions
13. Bertil Ohlin (1933), ‘Some Fundamentals of International Trade’
14. R. Dornbusch, S. Fischer and P.A. Samuelson (1977), ‘Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods’
15. Wassily Leontief (1953), ‘Domestic Production and Foreign Trade: The American Capital Position Re-examined’
16. Robert Z. Lawrence (2008) ‘Wage Inequality and Trade’

B Investment, Technology and Strategic Trade
17. Stephen Herbert Hymer (1976), ‘The Theory of International Operations’
18. Raymond Vernon (1966), ‘International Investment and International Trade in the Product Cycle’
19. G.C. Hufbauer (1966), ‘Conclusions’
20. Thomas Horst (1971), ‘The Theory of the Multinational Firm: Optimal Behavior under Different Tariff and Tax Rates’

C Scale Economies, Agglomeration and Fragmentation
21. Paul R. Krugman (1979), ‘Increasing Returns, Monopolistic Competition, and International Trade’
22. Alan V. Deardorff (2001), ‘Fragmentation in Simple Trade Models’

D Services Trade
23. Sherry M. Stephenson (2002), ‘Regional versus Multilateral Liberalization of Services’
24. Gene M. Grossman and Esteban Rossi-Hansberg (2008), ‘Trading Tasks: A Simple Theory of Offshoring’
25. Bernard Hoekman, Aaditya Mattoo and André Sapir (2007), ‘The Political Economy of Services Trade Liberalization: A Case for International Regulatory Cooperation?’
26. J. Bradford Jensen and Lori G. Kletzer (2008), ‘“Fear” and Offshoring: The Scope and Potential Impact of Imports and Exports of Services’

A Transaction Costs
27. John McCallum (1995), ‘National Borders Matter: Canada-U.S. Regional Trade Patterns’
28. David Hummels, Jun Ishii and Kei-Mu Yi (2001), ‘The Nature and Growth of Vertical Specialization in World Trade’
29. Antoni Estevadeordal, Brian Frantz and Alan M. Taylor (2003), ‘The Rise and Fall of World Trade, 1870–1939’

B Exchange Rates, Domestic Distortions and Adjustment Costs
30. J.E. Meade (1955), ‘The Case for Variable Exchange Rates’
31. Jagdish Bhagwati and V.K. Ramaswami (1963), ‘Domestic Distortions, Tariffs and the Theory of Optimum Subsidy’
32. Lori G. Kletzer (2001), ’Who Are Import-Competing Displaced Workers?’ and ‘Where Are Import-Competing Displaced Worked Reemployed?’
33. Howard Rosen (2008), ‘Designing a National Strategy for Responding to Economic Dislocation’

Volume II


An Introduction to both volumes by the editors appears in Volume I


A Politics of Protectionism
1. Anne O. Krueger (1974), ‘The Political Economy of the Rent-Seeking Society’
2. Edward John Ray (1981), ‘Tariff and Nontariff Barriers to Trade in the United States and Abroad’
3. Gary S. Becker (1983), ‘A Theory of Competition Among Pressure Groups for Political Influence’
4. Ronald Rogowski (1989), ‘Why Changing Exposure to Trade Should Affect Political Cleavages’
5. Robert E. Baldwin and Christopher S. Magee (2000), ‘Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills’
6. Michael J. Hiscox (2001), ‘Class Versus Industry Cleavages: Inter-Industry Factor Mobility and the Politics of Trade’

B Forces of Liberalization
7. Douglass C. North (1981), ‘The Issues’ and ‘Structure and Change in the American Economy, 1789–1914’
8. Mancur Olson (1982), ‘Jurisdictional Integration and Foreign Trade’
9. I.M. Destler (2005), ‘The Root Problem: Political Imbalance’ and ‘The 1934 System: Protection for Congress’

C GATT and the WTO
10. Andrew K. Rose (2004), ‘Do We Really Know That the WTO Increases Trade?’
11. Arvind Subramanian and Shang-Jin Wei (2007), ‘The WTO Promotes Trade, Strongly but Unevenly’
12. Jeffrey J. Schott (2011), ‘The Future of the Multilateral Trading System in a Multi-Polar World’

D Preferential Trade Agreements
13. Jacob Viner (1950), ‘The Economics of Customs Unions’
14. Jagdish Bhagwati (1993), ‘Regionalism and Multilateralism: An Overview’
15. Kyle Bagwell and Robert W. Staiger (1999), ‘An Economic Theory of GATT’
16. Richard E. Baldwin (1999), ‘A Domino Theory of Regionalism’
17. C. Fred Bergsten (1996), ‘Competitive Liberalization and Global Free Trade: A Vision for the Early 21st Century’

A Trade Advocates
18. Bela Balassa (1978), ‘Exports and Economic Growth: Further Evidence’
19. Jeffrey D. Sachs and Andrew Warner (1995), ‘Economic Reform and the Process of Global Integration’
20. Jeffrey A. Frankel and David Romer (1999), ‘Does Trade Cause Growth?’
21. L. Alan Winters, Neil McCulloch and Andrew McKay (2004), ‘Trade Liberalization and Poverty: The Evidence so Far’
22. Scott C. Bradford, Paul L.E. Grieco and Gary Clyde Hufbauer (2005), ‘The Payoff to America from Global Integration’
23. Caroline Freund and Bineswaree Bolaky (2008), ‘Trade, Regulations, and Income’

B Modern Skeptics
24. Raúl Prebisch (1959), ‘Commercial Policy in the Underdeveloped Countries’
25. Ross Perot and Pat Choate (1993), ‘A Giant Sucking Sound’
26. Francisco Rodríguez and Dani Rodrik (2000), ‘Trade Policy and Economic Growth : A Skeptic's Guide to the Cross-National Evidence’

Name Index