The Political Economy of Trade Integration

ISBN-13: 9783790809459 / Angielski / Miękka / 1996 / 182 str.

O. Fratzscher; Oliver Fratzscher

Opis

Theory of international trade is merged with models of political economy in order to illustrate puzzling issues in a world of rapid trade integration: How can regionalism and multilaterism be compatible and welfare be improved in a world of expanding trading blocks? How can a sustainable mechanism of trade integration be designed in Central Europe? How can foreign direct investment affect volumes and direction of trade? The Political Economy of Trade Integration reveals answers and policy implications.

Spis treści

I: Regionalism and Multilateralism: How Are They Compatible? — A Symmetrical Two-sector Trading Block Model.- Abstract.- 1. Introduction.- 2. A Look at Trade Data: More Regionalism and More Welfare.- 3. Krugman’s Trading Block Model.- 4. Two-sector Trading Block Model with Comparative Advantage.- 5. A Brief Critique, Conclusions, and Outlook.- 6. References.- 7. Appendix-I: Two-Sector Closed Economy Model.- 8. Appendix-II: Two-Sector Open Economy Model.- 9. Figures.- II: Political Economy of Trade Integration — A Mechanism of Central European Integration.- Abstract.- 1. Introduction.- 2. A Pressure Group Model of Trade Policy.- 3. Simulations with a Modified Trading Block Model.- 4. The Central European Demand for Integration.- 5. The European Union’s Supply of Integration.- 6. Conclusions.- 7. References.- 8. Appendix-I: Objective Functions for Consumers and Producers.- III: FDI: The Neglected Twin of Trade — A Substitute or a Complement?.- Abstract.- 1. Introduction.- 2. FDI and Trade as Vehicles of Global Integration.- 3. FDI and the Theory of Multinational Firms.- 4. Data Material.- 5. A Gravity Model of International Trade and FDI.- 6. Pitfalls of the Gravity Model.- 7. Macroeconomic Considerations.- 8. Conclusions.- 9. References.- 10. Appendix 1: FDI Effects on Trade in a Three-Country-World.- 11. Appendix 2a/b/c: Gravity Model of International Trade - Basic Model.- 12. Appendix 3a/b/c: Gravity Model of International Trade - Ext. Model.- 13. Appendix 3d: Gravity Model of International Trade - Notes.