Positive and Normative Analysis in International Economics : Essays in Honour of Hiroshi Ohta

This volume addresses profound issues in international economics, with contributions from leading researchers on the implications of trade. Empirical studies address preferential trading arrangements, global imbalances and exchange rates, facilitating an understanding of how the economy functions and enabling detailed policy evaluation. This Volume Addresses Important Issues In International Economics With Contributions From An Array Of Prominent Researchers 6 A Manifestation Of Hiroshi Ohta's Cross-border Research Network And His Passionate Dedication To Economics. Contributions Range From Studies On Positive And Normative Trade Theory, Innovation In International Trade And Interactions Between Domestic And Foreign Firms And Industries, To Studies Of A More Empirical Nature. The Empiricalcontributions Focus On Preferential Trading Arrangements, Global Imbalances And Exchange Rates, As Well Asprovidingan In-depth Analysis Of The Japanese Economy. The Featured Topics Are Explored From Both Positive And Normative Perspectives. Positive Analysis Describes How The Economy Functions, Dealing Primarily With What 'is'. Normative Analysis Is Concerned With What 'should Be'. This Combined Approach Enables The Formation Of A Base From Which Credible Policy Evaluation Can Take Place. Normative Trade Theory -- To Bribe Or Not To Bribe For Free Trade -- Innovations And International Trade -- Comparative Cost And Factor Endowments -- Social Welfare And Pareto Improvement -- Cost Harmonization And Welfare -- Capacity Constraint And Export Subsidies -- Subcontracting Or Exporting With Flexible Manufacturing -- Inward Fdi And The Size Of The Market -- Unionization And The Environment -- The Price Effects Of Mercosur -- Global Imbalances And Exchange Rates -- Regulation, Quality Adjustment And Relative Price Changes -- Continued Openness And Reforms For Agriculture. Normative Trade Theory / Murray C. Kemp -- The Moral Scientific Nature Of Stolper-samuelson's Proposal To 'bribe' For Free Trade / Hiroshi Ohta -- Innovations And International Trade / Michihiro Ohyama -- Comparative Cost And Factor Endowments : Ricardo And Ohlin / Bjarne S. Jensen -- Social Welfare And Pareto Improvement / Martin C. Mcguire -- The Welfare Effect Of International Cost Harmonization / Anthony Creane And Kaz Miyagiwa -- Capacity Constraint, Export Subsidies And World Recession / Hong Hwang, Chao-cheng Mai, And Ya-po Yang -- Subcontracting Or Exporting With Flexible Manufacturing / Wen-jung Liang And Chao-cheng Mai -- Inward Fdi And The Size Of The Market : Hosting Mncs Or Promoting Domestic Companies? / Akinori Tomohara -- Unionization And The Environment : A General Equilibrium Approach / Chi-chur Chao And Eden S.h. Yu -- How Regional Blocs Affect Excluded Countries : The Price Effects Of Mercosur / Won Chang And L. Alan Winters -- Global Imbalances And Exchange Rates : Welfare And Policy Implications / Hironobu Nakagawa -- Regulation, Quality Adjustment, And Relative Price Changes : The Case Of Yen Appreciation Shock Of 1985 / Kaku Furuya -- Continued Openness And Reforms For Agriculture In Japan / Hidetaka Kawano -- Appendix: Hiroshi Ohta : Curriculum Vitae. Edited By Murray Kemp, Hironobu Nakagawa, And Tatsuya Uchida. Includes Bibliographical References And Index. Front Matter....Pages i-xix Introduction....Pages 1-4 Front Matter....Pages 5-5 Normative Trade Theory....Pages 7-16 The Moral Scientific Nature of Stolper–Samuelson’s Proposal to ‘Bribe’ for Free Trade....Pages 17-36 Innovations and International Trade....Pages 37-53 Comparative Cost and Factor Endowments: Ricardo and Ohlin....Pages 54-83 Social Welfare and Pareto Improvement....Pages 84-100 Front Matter....Pages 101-101 The Welfare Effect of International Cost Harmonization....Pages 103-116 Capacity Constraint, Export Subsidies and World Recession....Pages 117-137 Subcontracting or Exporting with Flexible Manufacturing....Pages 138-156 Inward FDI and the Size of the Market: Hosting MNCs or Promoting Domestic Companies?....Pages 157-171 Unionization and the Environment: A General Equilibrium Approach....Pages 172-182 Front Matter....Pages 183-183 How Regional Blocs Affect Excluded Countries: The Price Effects of MERCOSUR....Pages 185-210 Global Imbalances and Exchange Rates: Welfare and Policy Implications....Pages 211-220 Regulation, Quality Adjustment, and Relative Price Changes: The Case of the Yen Appreciation Shock of 1985....Pages 221-236 Continued Openness and Reforms for Agriculture in Japan....Pages 237-265 Back Matter....Pages 266-274