This article examines the role of rules of origin as a commercial policy instrument that targets the input composition of imports. Using a three-country, partial equilibrium structure, we demonstrate conditions under which the imposition of a binding rule will be welfare improving for an...

This paper considers the links between trade liberalization and technology choice in the nonliberalizing country. Trade-liberalization-induced changes in relative product prices have direct effects on equilibrium relative factor returns. The consequent changes in relative input costs may also...

Trade Theory, Analytical Models and Development, comprises 11 essays offering new contributions on the following topics: trade and wages; factor endowments, factor mobility and political economy of trade; optimality of tariffs; measurement of welfare; customs union theory; endogenous mergers and...

The last decade has seen many important contributions to the field of International Trade Theory. This authoritative volume contains 27 seminal articles that represent the most significant of these recent developments. Topics include: multinational firms, trade with heterogeneous firms, general...

We develop a simple theoretical model to examine the impact of the distribution of wealth on the patterns of trade when capital markets are imperfect. Our model predicts that the dispersion of wealth can be a determinant of comparative advantage for low-income countries with poor financial...