Imperfect Competition in International Trade

A theoretical analysis of international trade and industrial policy, developing and using new models of trade with imperfect competition. Modeling of imperfect competition within international trade has been difficult until recent breakthroughs in this area, which have provided a more realistic view of the world economy. The book builds on the advances provided by such tools as game theory and the theory of monopolistic competition. The first section covers broad and basic trade issues which arise under imperfect competition. Section two examines implications for trade policy covering issues such as strategic trade policy in static and dynamic settings. Section three deals with various structural issues, such as optimal choice of trade liberalizing policies, the formation of trade blocks, and open dualistic economy with externalities.

1 Introduction. - I Basic issues of imperfect competition in international trade. - 2 Theory and policy of trade with imperfect competition. - 3 The gains from free trade under imperfect competition. - 4 On the behavior of monopoly in general equilibrium trade models. - 5 The international diffusion of the fruits of technical progress under imperfect competition. - II Trade policy issues. - 6 Demand behavior and import policy. - 7 Elimination of firm and welfare under international oligopoly. - 8 Intermediate input dependency, technology catch-up, and strategic Trade Policy. - 9 Tariff protection, imperfect competition, and time consistency. - 10 Imperfect competition, intra-industry trade, and trade policy. - 11 Dynamic effects of subsidies on output and R&D in an international export rivalry model. - III Trade liberalization and structural issues. - 12 Endogenous dualistic structure, Marshallian externalities, and industrialization. - 13 Intercountry gaps in increasing-returns-to-scale technologies and the choice among international economic regimes. - 14 Retaliatory mechanisms for eliminating trade barriers: aggressive unilateralism vs. GATT cooperation. - 15 The impact of EC92 on the third country: a simple analytical framework under imperfect competition.