The New Trade Theory and its Relevance to the Trade Policies of Developing Countries

World Economy ◽  
1995 ◽  
Vol 18 (3) ◽  
pp. 367-385 ◽  
Author(s):  
Asad Alam
Keyword(s):  
Developing Countries ◽  
Trade Policies ◽  
Trade Theory ◽  
New Trade Theory

Review of Literature

2020 ◽  
pp. 13-35
Author(s):  
Murali Patibandla
Keyword(s):  
International Trade ◽  
Comparative Advantage ◽  
Developing Economies ◽  
Import Substitution ◽  
Trade Policies ◽  
Trade Theory ◽  
Reform Era ◽  
Strategic Trade ◽  
New Trade Theory ◽  
Trade And Investment

The chapter reviews fundamental theoretical contributions explaining determinants of international trade starting from comparative advantage, neo-technology theories, intra-industry trade, strategic trade policies and ‘New’ New Trade Theory. For developing economies, the Heckscher-Ohlin (H&O) Theory of Comparative Advantage in labour abundance is relevant. However, as countries start growing economically, neo-technology and intra-industry factors become relevant. The book traces the transition of international trade behaviour starting the Pre-reform era of import substitution to the Post-reform era of opening to international trade and investment. The conceptual discussion provides basic underlying theories in understanding international trade and investment behaviour of firms. It shows under what conditions international trade and investment are beneficial to a country. The discussion of the theories helps in formulating hypotheses for empirical testing in the following chapters.

Economic Policy and World Organization

2011 ◽  
Vol 10 (1) ◽  
pp. 194-212
Author(s):  
Asaf Bar-Tura
Keyword(s):  
Developing Countries ◽  
Economic Policy ◽  
Fair Trade ◽  
Local Communities ◽  
Trade Policies ◽  
Economic Governance ◽  
World Poverty ◽  
World Organization ◽  
Global Arena ◽  
Global Economic Governance

AbstractThe global economic crisis and the responses to it have brought to the fore questions of sovereignty and cosmopolitanism. In a world so interlinked, what is the proper way to order the global arena, politically and economically? This essay examines Habermas’ multilayered approach to world organization, as well as Pogge and others. Focusing on the question of trade policies, I argue (contra Habermas) for robust global economic governance policies, but (contra Pogge) that these policies should uphold fair trade instead of free trade. This approach has the advantage of alleviating world poverty while at the same time strengthening local communities in developing countries. To this effect, I show why borders should matter more when it comes to capital, and less when it comes to people.

Trade Liberalization, Structural Change, and Economic Growth

2021 ◽  
pp. 407-441
Author(s):  
Michael Landesmann ◽  
Neil Foster-McGregor
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Trade Liberalization ◽  
Productivity Growth ◽  
Global Economy ◽  
Adam Smith ◽  
Trade Theory ◽  
New Trade Theory ◽  
The Impact ◽  
The Relationship

Trade and the integration of countries into the global economy is one of the main forces shaping the structural composition of economies, an effect which in turn is expected to impact upon productivity and growth. Structural change can be restrained or reinforced by international trade. This chapter reviews the theory on the relationship between trade and trade liberalization and both structural change and growth, from the contributions of Adam Smith to the more recent new new trade theory beginning with the work of Melitz. The chapter further discusses the existing empirical evidence on the relationship between trade and structural change, before concluding by presenting evidence on the impact of trade liberalization on productivity growth for a broad sample of countries, further decomposing the effect into an effect due to structural change and an effect due to within sector productivity developments.

Forward planning: meeting the requirements. The world food and agricultural situation

1973 ◽  
Vol 267 (882) ◽  
pp. 5-12 ◽  
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Technological Problem ◽  
Trade Policies ◽  
World Food ◽  
Planning Meeting ◽  
The World ◽  
The 1960S ◽  
The Developed Countries ◽  
Obvious Feature

The world food and agricultural situation in the 1980s must be looked at, as now, in terms of the division between developed and developing countries. While there will still be problems in the developed countries - such as surpluses - the great crisis will remain in the developing countries. The most obvious feature of the crisis is the balance between the increase in population and the increase in food production. In the 1960s, the balance was extremely precarious and, in the first two years of the 1970s, population actually grew faster than production. Hence, it is imperative to accelerate the increase in production in the developing countries. In order to achieve this, it is important to see to what extent the obstacles are due to lack of knowledge on how to obtain more from natural resources - primarily a technological problem - and to what extent they are due to the weaknesses of human institutions and of the political will for change. In addition, the prospects for a more rational and hopeful world food and agricultural situation in the 1980s will depend very largely on how the national agricultural production and trade policies of both developed and developing countries can be modified by practical steps towards international agricultural adjustment for the benefit of all.

The Role of Trade in Economic Development

1968 ◽  
Vol 22 (1) ◽  
pp. 44-71 ◽  
Author(s):  
Isaiah Frank
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
International Organizations ◽  
World Trade ◽  
Development Process ◽  
Trade Policies ◽  
Poor Countries ◽  
Effective Instrument ◽  
First Time

The key role of trade in the development process is widely accepted today. Two recent events, both relating to international organizations, underscore this acceptance. One was the convening in 1964 of the United Nations Conference on Trade and Development (UNCTAD) and its establishment as a permanent organ of the UN system. Under UNCTAD's aegis a continuing examination is being conducted as to ways of reshaping world trade policies in the interests of the developing countries. The other event was the adoption early the following year of a new set of articles on trade and development in the General Agreement on Tariffs and Trade (GATT). In the new articles recognition of the role of exports in economic development was established for the first time in the text of the GATT itself, and a constitutional basis was provided for GATT's many activities designed to promote the exports of developing countries. Elsewhere in this volume are essays evaluating the contributions of UNCTAD and GATT toward the promotion of development in the world's poor countries. In this essay I will rather explore more generally the relation between international trade and economic development and discuss some of the problems that have arisen in the effort to make trade a more effective instrument of development.

European Communities

1961 ◽  
Vol 15 (1) ◽  
pp. 201-203
Keyword(s):  
Developing Countries ◽  
European Economic Community ◽  
Raw Materials ◽  
Trade Association ◽  
Export Credit ◽  
Trade Policies ◽  
Member States ◽  
European Free Trade Association ◽  
Draft Resolution ◽  
October 17

On October 17, 1960, the European Parliamentary Assembly, after a debate on trade policy and economic cooperation with third countries, adopted a draft resolution covering such topics as the coordination of trade policies, relations between the European Economic Community (EEC) and the European Free Trade Association (EFTA), and policies toward developing countries. In its resolution the Assembly called for an intensification of consultations between member states and the EEC Commission, with a view to increasing participation by the Commission in bilateral negotiations between member states of the Assembly and third countries. With regard to relations between EEC and EFTA, it suggested that the possibility of the EFTA ountries' ultimately joining EEC be examined in the light of the Rome Treaty and the Stockholm Convention, and, with regard to policies toward the developing countries, it proposed the following steps: 1) stabilizing prices of, and reducing import taxes on, raw materials; 2) enlarging quotas for imports from developing countries; and 3) improving export credit terms, as well as increasing financial aid, to enable such countries to pay for imports essential to their development.

scholarly journals Multinational firms and the new trade theory

1998 ◽  
Vol 46 (2) ◽  
pp. 183-203 ◽  
Author(s):  
James R. Markusen ◽  
Anthony J. Venables
Keyword(s):  
Multinational Firms ◽  
Trade Theory ◽  
New Trade Theory
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