There are two principal theories of why countries trade: comparative advantage and increasing returns to scale. Yet there is no empirical work that assesses the relative importance of these two theories in accounting for production structure and trade. We use a framework that nests an increasing...

This paper explores a number of conceptual issues that are germane to the analysis of conflict and cooperation in international economic policy and law. The focus is on issues involving conflict and cooperation that have been treated in the theory of international trade, in particular departures...

Our paper is designed to provide the context for the theme of the conference, "The Representation of Constituent Interests in the Design and Implementation of U.S. Trade Policies." We begin by reviewing the normative and political economy approaches to the modeling of trade policies. We identify...

This chapter introduces the proceedings of a conferences held on November 8-9, 1996, in Ann Arbor, MI, honoring John Sweetland and his late wife, Gayle, for the generous gift commitments that they have made to the Michigan Department of Economics. The academic purpose of the conference was to...

In this paper, we adapt the latest version of the Michigan Model of World Production and Trade to incorporate relationships and data for cross-border services trade and foreign direct investment (FDI) in the major developed and developing countries subsumed in the model's structure and database.

There is a wide disparity of views on issues of international labor standards. Labor and social activists are concerned about the increased imports from countries in which labor standards are ostensibly not enforced at a sufficiently high level. They fear that these imports will be detrimental...

This paper examines the implications of the Heckscher-Ohlin (HO) Model for the patterns of production and trade that will emerge as a country grows. It focuses primarily on world equilibria that include two or more cones of diversification. Starting with the textbook model of two factors and two...