International Trade in Capital Goods
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International Trade in Capital Goods

International Trade in Capital Goods


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About the Book

A central concern of this thesis is to take seriously the implication of the capital controversies for trade theory pointed out by Steedman et. al. (1979). The trade models developed in this thesis are of a "classical" nature. It has kept strictly intact the distinction between value capital and heterogeneous capital goods and allowing the latter to be internationally traded. The trade models developed in this thesis themselves may be regarded as complete in the sense that they determine all variables of interest. This thesis has developed multi-country multi-commodity models of international trade in static and dynamic settings. Accordingly, the thesis contains two main chapters. The third chapter, "Leontief Trade Models" applies the static open Leontief model to study the international trade. Traditionally the Leontief input-output model has been used as methodological apparatus for testing alternative theories of trade. We have shown in this section how international trade theory itself can be written in terms of the Leontief model. The Leontief trade model then makes a claim to greater generality by accommodating trade between several countries in several commodities which has been very difficult for standard trade theories to do. The Leontief trade model determines the comparative advantages, trade patterns, terms of trade and currency exchange rate simultaneously. The price system of the Leontief static open model is the unified price system for all countries and can be referred to as world price system which determines a solution for prices. The Leontief trade model has the ability to synthesize the 'pure' and the 'monetary' aspects of international trade. The fourth chapter, "Dynamic Trade Models' goes further to apply the Sraffa (1960) system to study international trade. This chapter considers the problem of determining the international trade equilibrium for growing economic systems. In the dynamic model, if and when trade equilibrium exist, then it determines; (a) the pattern of specialization in production viz. which countries produce which commodities (b) the post-trade prices of commodities (c) the post-trade outputs of commodities (d) the pattern of gains from trade i. e. which country gains how much by importing which commodity from which country (e) the commodity wise volumes of inter-country exports and imports (f) the equilibrium exchange rates and the international terms of trade


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Product Details
  • ISBN-13: 9788119549924
  • Publisher: Ujwala Sakharam Kamble
  • Binding: Paperback
  • Language: English
  • Returnable: Y
  • Weight: 227 gr
  • ISBN-10: 8119549929
  • Publisher Date: 31 Aug 2023
  • Height: 229 mm
  • No of Pages: 122
  • Spine Width: 7 mm
  • Width: 152 mm


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