Front cover -- Contemporary and Emerging Issues in Trade Theory and Policy -- Copyright page -- Dedication -- About the series: Frontiers of economics and globalization -- List of contributors -- Contents -- Section I: Introduction -- Contemporary and Emerging Issues in Trade Theory and Policy -- Section I - Editorial introduction -- Section II - Perspective on trade models -- Section III - Factor rewards and trade theory -- Section IV - Dynamic issues -- Section V - Trade and the developing economy -- Section VI - International factor mobility -- Section VII - International trade policy -- Section II: Perspective on trade models -- Chapter 1. National Security and International Trade: A Simple General Equilibrium Model -- References -- Chapter 2. Do Factor Endowments Matter for North-North Tradequest -- 1. Introduction -- 2. Theory -- 3. Measuring net factor trade -- 4. Conclusion -- Acknowledgements -- References -- Chapter 3. A Simple Vertical Competition Model: Structure and Performance -- 1. Cournot's forward integration model -- 2. The model -- 3. A numerical example: anti-trust issues -- 4. Empirical implications -- Acknowledgments -- References -- Chapter 4. Globalization, Trade in Middle Products, and Relative Prices -- 1. Introduction -- 2. Real GDP, real GDI, and relative prices -- 3. Description of the aggregate technology -- 4. Estimation results -- 5. Accounting for changes in openness, imbalances, and income shares -- 6. Productivity -- 7. Conclusions -- Acknowledgment -- Appendix: Description of the data -- References -- Chapter 5. Fixed Transport Costs and International Trade -- 1. Introduction -- 2. The general model -- 3. The offer curves -- 4. The Equilibria -- 5. The Ricardian case -- 6. Stability and Efficiency -- 7. Concluding remarks and extensions -- References -- Section III: Factor rewards and trade theory.

Chapter 6. Something New for Something Old: Reflections on a Model with Three Factors and Two Goods -- 1. Introduction -- 2. The issues -- 3. The model -- 4. Two extreme cases -- 5. Conclusion -- References -- Chapter 7. On Commodity Prices and Factor Rewards: A Close Look at Sign Patterns -- 1. Introduction -- 2. Preliminaries -- 3. Effects of commodity price changes on factor rewards -- References -- Chapter 8. Comparative Statics in a Two-Factor Multi-Commodity Model without Factor Price Equalization -- 1. Introduction -- 2. The model -- 3. An integrated world equilibrium -- 4. Trading equilibrium without FPE -- 5. Global analysis -- 6. Concluding remarks -- Acknowledgement -- Appendix -- References -- Section IV: Dynamic issues -- Chapter 9. Distortions in the Two-Sector Dynamic General Equilibrium Model -- 1. Introduction -- 2. A dynamic open economy model with factor market distortions -- 3. Steady state -- 4. Dynamics in the region of complete specialization -- 5. Conclusions -- Acknowledgements -- References -- Chapter 10. Specific Factor Models and Dynamics in International Trade -- 1. Introduction -- 2. The Jones model -- 3. Dynamic model with a constant rate of time preference -- 4. Dynamic model with a variable rate of time preference -- 5. Conclusion -- Acknowledgments -- Appendix -- References -- Section V: Trade and the Developing Economy -- Chapter 11. Skill Formation and Income Distribution in a Three Class Small Developing Economy -- 1. Introduction -- 2. The foundation -- 3. Comparative statics -- 4. Conclusion -- Acknowledgments -- Appendix. Effects of an increase in Px on S -- References -- Chapter 12. Foreign Capital and Skilled-Unskilled Wage Inequality in a Developing Economy with Non-Traded Goods -- 1. Introduction -- 2. The model with non-traded intermediate input -- 3. The modified system with non-traded final commodity.

4. Policy implications and concluding remarks -- Acknowledgement -- Appendix I -- Appendix II -- Appendix III -- Appendix IV -- Appendix V. Stability condition of the market for commodity 2 -- Appenix VI. Derivation of expression for X3 -- Appendix VII. Derivation of expression for X4 -- References -- Chapter 13. Trade, Wage Inequality and the Vent for Surplus -- 1. Introduction -- 2. Model -- 3. Autarky -- 4. Trade -- 5. Conclusion -- References -- Chapter 14. Informed Buyers and Trade Sanction against Child Labour: Does It Workquest -- 1. Introduction -- 2. A formal argument -- 3. Product labelling, trade sanction and the incidence of child labour -- 4. Trade sanction and decision of poor parents -- 5. Conclusion -- Acknowledgements -- Appendix -- I. Slope of the mX(Z) curve -- II. Perverse effect of trade sanction -- References -- Chapter 15. Public Inputs, Urban Development, and Welfare in a Developing Economy -- 1. Introduction -- 2. Public inputs in a dual economy -- 3. Effects of public inputs -- 4. Public inputs, goods prices, and urban unemployment -- 5. Urban development and national welfare -- 6. Simulations -- 7. Concluding remarks -- Acknowledgement -- References -- Section VI: International factor mobility -- Chapter 16. Moving People or Jobsquest A New Perspective on Immigration and International Outsourcing -- 1. Introduction -- 2. Literature -- 3. Model and propositions -- 4. Conclusion -- Acknowledgement -- References -- Chapter 17. Commodity Demand, Capital Mobility, and International Trade: A Ricardian Approach -- 1. Introduction -- 2. The model -- 3. Free trade equilibrium -- 4. Capital movements -- 5. Conclusions -- Acknowledgements -- References -- Chapter 18. International Outsourcing Under Monopolistic Competition: Winners and Losers -- 1. Introduction -- 2. The model.

3. International outsourcing: The case of zero fixed cost of outsourcing -- 4. Outsourcing with homogeneous fixed costs -- 5. Outsourcing under heterogeneous fixed costs -- 6. Optimal outsourcing vs. equilibrium outsourcing -- 7. A two-period model -- 8. Concluding remarks -- Acknowledgements -- References -- Chapter 19. The Effect of New Environment on Foreign Direct Investment in an Oligopolistic Heckscher-Ohlin Model -- 1. Introduction -- 2. An H-O model of FDI -- 3. Factor-price equalization with thetaequals1 -- 4. New environment and FDI -- 5. Conclusion -- Acknowledgement -- References -- Section VII: International trade policy -- Chapter 20. International Trade Agreements -- 1. Introduction -- 2. The Model: Economics -- 3. The model: Policy formation -- 4. The non-cooperative equilibrium -- 5. Trade agreements -- 6. Concluding remarks -- References -- Chapter 21. Competition Policy as a Substitute for Tariff Policy -- 1. Introduction -- 2. Basic structure -- 3. Quantitative analysis -- Appendix -- Appendix A. Optimal partial tariff policy -- Appendix B. Optimal competition policy -- Appendix C1. Optimal partial tariff policy under the special functional forms -- Appendix C2. Trade balance equation and elasticity of foreign import demand in the optimal partial tariff policy under the special functional forms -- Appendix D1. Optimal competition policy under the special functional forms -- Appendix D2. Trade balance equation and elasticity of foreign import demand in the optimal competition policy under the special functional forms -- References -- Chapter 22. Free Trade between Large and Small: What's in it for the Large Countryquest What's in it for the Smallquest -- 1. Introduction -- 2. The calculus of national economic welfare -- 3. Welfare from varying small country size -- 4. Informational requirements for welfare assessments.

5. On the likelihood of welfare improving integration -- 6. Conclusion -- Acknowledgements -- References -- Chapter 23. Fragmented Trade and the Hub-spokes Game - Strategic Trade Under the WTO -- 1. Motivation -- 2. Statement of the problem -- 3. The hub-spokes network -- 4. The hub-spokes model -- 5. The evolving world -- 6. Some statistical facts -- 7. Concluding remarks -- References -- Subject Index.