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 word fragmentation refers to a splitting up of a verticallyintegrated production process such that the separatefragments can be traded on markets. This paper is concerned withinternational fragmentation, generally allowing gainsfrom a finer division of labor based on comparative advantage...

Today’s global world is characterized not only by a high volume ofinternational trade and foreign investment relativeto national income, but also by a changed composition of that tradetowards a greater fraction of trade in inputs andcapital goods and outsourcing of production.. Emphasized is...

The Jones-Kierzkowski model of global fragmentation of production draws attention to the efficiency of 'service links' connecting 'production blocks' in different countries. Country-specific service links include transport and telecommunications infrastructure and the overall business climate....

This paper examines the connection between a terms-of-trade improvement and the real wage rate for a country that is immersed in a trading world with many traded commodities as well as a non-tradeable. There is an array of commodities that are imported but not produced at home, and the price of...

In competitive international trade theory two of the basic models are the Specific Factors Model and the Heckscher/Ohlin model, with dimensionality 3×2 and 2×2 respectively. A surprising result in Heckscher/Ohlin is that the effect on factor prices of an infinitesimal change in a commodity...