Contents. List of Figures / xi. Acknowledgements / xxi. 1. International Trade: Theory and Application / 1

Transcription

1 List of Figures / xi List of Tables / xvii Acknowledgements / xxi 1. International Trade: Theory and Application / An Overview of the Global Economy / World Trade by Region / What Is Globalization? / China s Increasing Trade Openness and the Implications for World Trade / Conclusion / The Pure Theory of International Trade: Supply / Introduction / The Mercantilist View / Absolute Advantage / Comparative Advantage / Comparative Advantage and the Developing Countries / An Enquiry into the Revealed Comparative Advantage of Trinidad and Tobago / Conclusion / 27 Appendix 2.1: Measuring Revealed Comparative Advantage (RCA) / Terms of Trade / Introduction / Net Barter Terms of Trade / 31 v

2 vi Contents 3.2 Trends in the Terms of Trade of Trinidad and Tobago / Income Terms of Trade / Comparing the Income Terms of Trade (YTT) and the Net Barter Terms of Trade (NBTT) / Comparing the Terms of Trade of CARICOM Countries / Illustration of the Two Factor Terms of Trade: Single and Double Factoral / The Transfer Problem and the Terms of Trade / Conclusion / Gains from Trade in Neoclassical Theory / The Concept of Opportunity Cost / Indifference Curves / Budget Line / Consumer Equilibrium / The Price Consumption Curve and the Demand Curve / Factor Intensity of a Production Process / General Equilibrium in a Closed Economy (Autarky) / Gains from Trade / Decomposing the Gains from Trade / Specialization and Export Concentration in Trinidad and Tobago / Foreign Countries and Gains from Trade / Conclusion / Offer Curves / Introduction / Offer Curves and the Equilibrium Terms of Trade / Factors Influencing a Shift of the Offer Curve / Conclusion / A Basis for Trade: The Factor Proportion Hypothesis / Introduction / The Heckscher- Ohlin Theorem: Two Countries, Two Factors, Two Commodities / The Heckscher- Ohlin (H/O) Theorem: Factor Proportions Are Key to Trade Patterns / The Factor Price Equalization Theorem / 75

3 vii 6.4 Intra- CARICOM Single Market and Economy (CSME) Nurses Salaries and the Factor Price Equalization / The Stolpher- Samuelson Theorem / Growth and Changing Factor Endowments in Trinidad and Tobago / Empirical Evidence on the Classical Model / Tests of the Heckscher- Ohlin (H/O) Model / Reconciling the Leontief Paradox / Conclusion / Alternative Theories of Trade and Intra- Industry Trade / Introduction / Imitation Gap Theories of Trade / Product Cycle Hypothesis / Increasing Returns, Imperfect Competition and International Trade / Engel Effects / Linder s Representative Demand Hypothesis / Intra- Industry Trade / Marginal Intra- Industry Trade / Conclusion / Economic Growth and International Trade / Introduction / The Pre- growth Scenario / The Production Effects of Growth / Labour Growth and Capital Accumulation over Time / Technical Progress, Trade and Welfare / The Dutch Disease / The Dutch Disease and Deindustrialization / Empirical Investigation of the Dutch Disease and Deindustrialization in the Trinidad and Tobago Economy / Immiserizing Growth / The Rybczynski Theorem: Growth of Production Alone / Conclusion / International Factor Flows: Foreign Direct Investment / Introduction / The Significance of FDI Flows / 142

4 viii Contents 9.2 Welfare Effect of International Capital Flows / Determinants of FDI Flows / FDI and Economic Growth / FDI Flows in Other CARICOM States / Does FDI Lead to Economic Growth? / FDI and Wage Inequality in Developing Countries / Wage Inequality in Trinidad and Tobago / Conclusion / International Flows of Factors of Production: Labour / Introduction / Labour Movement between Countries / Motives for International Labour Migration: Reflections on the Migration of Nurses from CARICOM / Persistence of Push/Pull Factors into the Medium and Long Term / Foreign Population Characteristics in Developed Countries / World Remittance Flows / Conclusion / Tariffs / Some Introductory Definitions / Economic Effects of a Tariff / The Specific Tariff in the Small- Country Case / The Welfare Effects of Tariffs / General Equilibrium Effects of a Tariff in a Small Economy / The Prisoner s Dilemma and International Trade / Arguments for Tariffs and Their Theoretical Validity / Effective Tariffs / A Large Country and Tariffs That Improve Its Terms of Trade / Tariffs That Reduce Welfare / Tariffs That Improve Welfare / Tariffs and Tariff Retaliation / The Optimal Tariff / Conclusion / 198 Appendix 11.1: CARICOM and the Common External Tariff / 199 Appendix 11.2: CARIFORUM EC Economic Partnership Agreement / 205

5 ix Appendix 11.3: Economic Effects of Dumping / 206 Appendix 11.4: General Equilibrium Illustration of the Infant Industry Argument / Other Non- Tariff Instruments of Trade Policy / Introduction / Import Subsidies / Export Subsidies / Export Tax in a Small Country / Economic Effect of a Quota / The Effect of a Quota on the Terms of Trade of a Large Country / Voluntary Export Restraint (VER) and the Terms of Trade / Lerner Symmetry Theorem / Conclusion / 224 Notes / 227 References / 233 Answer Key / 239 Index / 241