International Trade and Economic Growth

Hendrik  Van den Berg (Author) ,  Joshua J Lewer (Author)

"I see this book as being a valuable teaching tool for courses in international economics, economic growth, and perhaps economic development. It would serve as the main text in courses in international economics and as a supplementary text in economic growth and development. I think it would be best used in upper division undergraduate and lower level graduate classes." - Richard Grabowski, Southern Illinois University"

• 1. The Welfare Gains from Trade; Static Models and the Gains from Trade; Estimates of the Static Gains from Trade; Economic Growth and International Trade; The Power of Compounding; Does Trade Cause Growth? 2. Trade and Growth: The Empirical Evidence; The Statistical Relationship Between Trade and Growth; Regressing Economic Growth on International Trade; The Feder Model; Dealing with Simultaneity; Finding Trade's Growth Effect Using Qualitative Measures; Robust Studies; Testing How Trade Affects Growth; Summary and Assessment of the Empirical Results; 3. International Trade and Factor Accumulation; The Early Growth Models; The Classical Economists and Diminishing Returns; The Harrod-Domar Growth Model; Robert Solow and His Neoclassical Growth Model; The Gains from Trade According to the Solow Model; East Asia and the Solow Model; Conclusions; Appendix: The Convenient Cobb-Douglas Production Function; 4. Overcoming Diminishing Returns: Technology As an Externality; Factor Accumulation without Diminishing Returns; Technology; Technological Progress As an Externality; Learning By Doing; Learning By Trading; Conclusions; 5. Technological Progress As Creative Destruction; Joseph Schumpeter's Creative Destruction; The Schumpeterian R&D Model; A Mathematical Version of the Schumpeterian Model; The Long-Run Trend in the Costs of Innovation; Conclusions and Remaining Issues; 6. International Trade and Technological Progress; International Trade and the Schumpeterian Model; The Size of Economies and Technology; Leader-Follower Models of Growth; Sources of Ambiguity About Trade's Growth Effect; Protectionism and Creative Destruction; Conclusions and Remaining Issues; 7. Multi-Sector Models and International Trade; A Two-Sector Learning-by-Doing Model; Other Sectoral Models of Trade and Economic Growth; Terms of Trade Arguments for Protection; Protectionism to Promote Technological Progress; Import Substitution Policies; Conclusions; 8. International Trade and Technology Transfers; Domestic Technology versus Adopted Technology; Empirical Evidence on Technology Diffusion; Summary and Conclusions; 9. Restating the Case for Free Trade; Dynamic Arguments for Free Trade; A Much More General View of Trade and Growth; Concluding Comments.