Palgrave Handbook of International Trade

International trade is the core foundation of globalisation. This current and up-to-date volume brings together the finest academics working in the field today, containing contributions in key areas of policy research, such as, modelling frameworks, trade

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PALGRAVE HANDBOOK OF INTERNATIONAL TRADE Edited by Daniel Bernhofen, Rod Falvey, David Greenaway and Udo Kreickemeier

Palgrave Handbook of International Trade

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Palgrave Handbook of International Trade Edited by

Daniel Bernhofen American University, US

Rod Falvey Bond University, Australia

David Greenaway University of Nottingham, UK

and Udo Kreickemeier University of Tübingen, Germany

Palgrave

macmillan

Editorial and Selection © Daniel Bernhofen, Rod Falvey, David Greenaway and Udo Kreickmeier 2011, 2013 Individual Chapters © Contributors 2011, 2013 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published in 2011 First published in paperback 2013 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978-0-230-30531-1 (eBook) ISBN 978-1-137-35180-7 DOI 10.1007/978-0-230-30531-1 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.

Contents

List of Tables

vii

List of Figures

viii

Notes on Contributors

xi

1 Editors’ Introduction Daniel Bernhofen, Rod Falvey, David Greenaway and Udo Kreickemeier

1

Part A Foundations and Modelling Frameworks 2 The Development of International Trade Theory Roy J. Ruffin

15

3 General Equilibrium Trade Theory Alan Woodland

39

4 The Empirics of General Equilibrium Trade Theory Daniel M. Bernhofen

88

5 General Equilibrium Trade Theory and Firm Behaviour Kristian Behrens and Gianmarco I.P. Ottaviano

119

6 Firms’ Internationalisation Strategies: The Evidence David Greenaway, Richard Kneller and Danny McGowan

160

7