The greatest strength of this thoroughly revised and expanded edition of Lectures on International Trade is its rigorous algebraic and geometric treatment of the various models and results of trade theory. The authors, who now include Arvind Panagariya, offer both policy insights and empirical applications. They have added nine entirely new chapters as well as new sections to several existing chapters (e.g., a greatly expanded treatment of the growing theory of preferential trade agreements). The new chapters are on:
- the specific-factors model
- the "higher-dimensional" trade theory and empirical verification of the Heckscher-Ohlin-Vanek theory
- duality in trade theory
- algebra of the Heckscher-Ohlin and specific-factors models
- the theories of international trade in the presence of scale economies
- nontariff instruments of trade policy, chiefly AD, VERs, and VIEs
- trade policy under oligopoly and monopolistic competition
- trade policy reform
- application of the new literature on endogenous growth to trade theory and policy
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Jagdish Bhagwati is University Professor at Columbia University and External Advisor to the Director General, World Trade Organization and Senior Fellow for International Economics with the Council on Foreign Relations. He was named Distinguished Fellow of the American Economic Association in 2003.
"A comprehensive treatment of both positive and normative trade theory, this second edition includes new chapters on the specific-factors model, economies of scale, strategic trade policy, and endogenous growth. Graduate students will appreciate the lucid writing and the judicious mix of algebra and diagrams."
—Gene Grossman, Jacob Viner Professor of International Economics, Princeton University
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