Developments of International Trade Theory
Developments of International Trade Theory offers the life-long reflections of a distinguished Japanese scholar who pioneered the application of general equilibrium theory to international trade. Written in a style that makes it easily accessible to schol
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Research Monographs in Japan-U.S. Business & Economics
series editors Ryuzo Sato Rama V. Ramachandran Stern School of Business New York University Kazuo Mino Kobe University Japan
Other books published in the series: Sato and Ramachandran Conservation Laws and Symmetry: Applications to Economics and Finance Sato, Ramachandran, and Hori Organization, Performance, and Equity: Perspectives on the Japanese Economy Sato, Grivoyannis, Byrne, and Lian Health Care Systems in Japan and the United States: A Simulation Study and Policy Analysis Sato and Ramachandran Symmetry and Economic Invariance: An Introduction Sato, Ramachandran and Mino Global Competition and Integration Negishi, Ramachandran and Mino Economic Theory, Dynamics and Markets: Essays in Honor of Ryuzo Sato
DEVELOPMENTS OF INTERNATIONAL TRADE THEORY
by
Takashi Negishi Aoyama Gakuin University Japan
" ~.
SPRINGER SCIENCE+BUSINESS MEDIA, LLC
Library of Congress Cataloging-in-Publication Data
Negishi, Takashi, 1933Developments of international trade theory / by Takashi Negishi. p. cm.-{Research monographs in Japan-U.S. business & economics) Includes bibliographical references and indexes. ISBN 978-1-4419-4902-8 ISBN 978-1-4757-4959-5 (eBook) DOI 10.1007/978-1-4757-4959-5
1. International trade-Econometric models 2. Economic developmentEconometric models. I. Title. II. Series. HF1379 .N44 2001 382'.01-dc21 2001033884
Copyright © 2001 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 2001
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, LLC.
Printed on acid-free paper.
CONTENTS
Preface
vii
Part I 1
Mercantilism
3
2
Specie-flow Mechanism
13
3 Adam Smith and Division of Labor
23
4
Ricardo and Comparative Costs Appendix to Chapter 4 Kojima on Ricardo 5 J. S. Mill and Reciprocal Demand Appendix to Chapter 5 Mill and Thornton
33 45 53
63
6
Mill and Infant Industry
73
7 Marx and International Exploitation
83
vi
DEVELOPMENTS OF INTERNATIONAL TRADE THEORY
8 Marshall and Offer Curve
95
Part II 9
Theory of Production
107
10 Heckscher-Ohlin Theory (1)
117
11 Heckscher-Ohlin Theory (2)
127
12 Leontief Paradox
137
13 Domestic Distortions
147
14 Export and Welfare
157
15 Oligopoly Appendix to Chapter 15 Tariffs versus Quotas
167 175
16 Immiserizing Growth Appendix to Chapter 16 Second Best Problems
185 195
17 External Economies Appendix to Chapter 17 Internal Economies
205 215
Authors Index
223
Subject Index
225
PREFACE
This book is based on my lectures on international trade in 1993-2000 at the School of International Politics, Economics and Business, Aoyama Gakuin University, Tokyo. According to the late Professor M. Bronfenbrenner, who did the same lectures in 1982-1990, this school was established in 1982 based on the late Chancello
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