• About
    • Login
    View Item 
    •   Institutional Repository Home
    • College of Arts and Science
    • Department of Economics
    • Working Papers
    • View Item
    •   Institutional Repository Home
    • College of Arts and Science
    • Department of Economics
    • Working Papers
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

    All of Institutional RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDepartmentThis CollectionBy Issue DateAuthorsTitlesSubjectsDepartment

    My Account

    LoginRegister

    How New is the "New Trade Theory" of the Past Two Decades?

    Maneschi, Andrea
    : http://hdl.handle.net/1803/15639
    : 2000

    Abstract

    This paper looks at the paradigm of the past two decades that goes under the name of "new trade theory" or "new international economics", and rejects the assumptions underlying mainstream trade theory such as constant returns to scale and perfect competition. Authors contributing to it include Krugman, Dixit, Lancaster, Grossman, Helpman, Brander, Spencer and Ethier. After describing the main tenets of this new paradigm, Section 1 explores in greater depth the reasons for its birth. The new trade theory offers rationales for trade that often dispense altogether with the notion of comparative advantage, and new insights into the nature of the gains from trade. Section 2 examines its antecedents in the history of economic thought, which hark back to Adam Smith's productivity theory of trade according to which productivity rises when specialization is stimulated by a more extended market. Section 3 attempts to measure the "progress" which the new trade theory has achieved with respect to these classical antecedents, and studies its relation to the infant industry argument for protection popularized by J. S. Mill. Section 4 assesses the progress claimed by the new trade theorists with respect to the mainstream theory of trade. Section 5 draws some conclusions, and explores whether the theoretical advances of the new trade theory constitute a net advance over similar theories formulated in the classical period.
    Show full item record

    Files in this item

    Icon
    Name:
    vu00-w27.pdf
    Size:
    60.29Kb
    Format:
    PDF
    View/Open

    This item appears in the following collection(s):

    • Working Papers

    Connect with Vanderbilt Libraries

    Your Vanderbilt

    • Alumni
    • Current Students
    • Faculty & Staff
    • International Students
    • Media
    • Parents & Family
    • Prospective Students
    • Researchers
    • Sports Fans
    • Visitors & Neighbors

    Support the Jean and Alexander Heard Libraries

    Support the Library...Give Now

    Gifts to the Libraries support the learning and research needs of the entire Vanderbilt community. Learn more about giving to the Libraries.

    Become a Friend of the Libraries

    Quick Links

    • Hours
    • About
    • Employment
    • Staff Directory
    • Accessibility Services
    • Contact
    • Vanderbilt Home
    • Privacy Policy