Provides an alternative approach to modeling material processes in economics. Argues that material wealth (GDP) is an increasing function of two universal factor inputs, namely broadly-defined energy and broadly-defined organization. Uses the results to examine the productivity slowdown, the ICT revolution and the phenomenon of outsourcing. The latter is attributed to a desire on the part of firms/shareholders to capture a greater share of the relevant energy rents.

Provides a network approach to understanding trade and trade policy from Antiquity to the present. Argues that trade has occurred, is occurring, and will continue to occur within well-defined, stable networks (e.g. empires, multinational firms, free-trade areas). Is able to rationalize the many puzzles that currrently plague international economics. Results can be generalized to all trade activity, ranging from economic to social, to political.

Raises doubt about the validity of the impending "Third Industrial Revolution" based on information and communications technology. Shows using basic science that information, unlike energy, is not physically productive, raising serious doubts over the ability of ICT to raise the standard of living.

Despite its long history, comparative advantage, the cornerstone of the study of international trade, remains a concept in search of a credible theory by which it should be understood, a theory that is consistent with the data, both historical and contemporary. Among the most celebrated approaches has been that of Eli Heckscher and Bertil Ohlin, focusing on factor proportions and factor intensities. While both appealing and intuitive, it however has been systematically rejected by the data. This book, which brings together the author’s previously published work, is an attempt to...