Trade is a cornerstone concept in economics worldwide. This updated second edition of the essential graduate textbook in international trade brings readers to the forefront of knowledge in the field and prepares students to undertake their own research. In Advanced International Trade, Robert Feenstra integrates the most current theoretical approac

Acknowledgments ix Foreword to the Second Edition xi Chapter 1 Preliminaries: Two-Sector Models 1 Chapter 2 The Heckscher-Ohlin Model 25 Chapter 3 Many Goods and Factors 51 Chapter 4 Trade in Intermediate Inputs and Wages 83 Chapter 5 Monopolistic Competition and the Gravity Equation I 119 Chapter 6 Monopolistic Competition and the Gravity Equation II 155 Chapter 7 Gains from Trade and Regional Agreements 186 Chapter 8 Import Tariffs and Dumping 214 Chapter 9 Import Quotas and Export Subsidies 256 Chapter 10 Political Economy of Trade Policy 299 Chapter 11 Trade and Endogenous Growth 331 Chapter 12 Multinationals and Organization of the Firm 360 Appendix A Price, Productivity, and Terms of Trade Indexes 403 Appendix B Discrete Choice Models 419 References 431 Index 465

Praise for the previous editon: "No other book in advanced international trade matches this one in providing a clear, complete, up-to-date, balanced, and systematic summary of international trade theory and evidence. Its impact on the graduate education and scholarly research of international trade will be felt for years to come."—Bin Xu, University of Florida

Praise for the previous editon: "No other book in advanced international trade matches this one in providing a clear, complete, up-to-date, balanced, and systematic summary of international trade theory and evidence. Its impact on the graduate education and scholarly research of international trade will be felt for years to come."—Bin Xu, University of FloridaPraise for the previous editon: "In fifteen years of teaching this material I have never used a textbook. Thanks to Robert Feenstra, my students are about to experience a dramatic change for the better. When I have a question about international trade I immediately turn to Rob Feenstra for answers and insights. He is the most distinguished empirical researcher in the field today. Not surprisingly, this book reflects both his awesome scholarship and his ability to communicate ideas simply."—Daniel Trefler, University of TorontoPraise for the previous editon: "This book is a tremendous contribution. It will quickly become 'the' main textbook in graduate international trade classes, and will be a useful reference for many others interested in the field. It is very up-to-date and is unique in emphasizing empirical testing and results, precisely what most trade economists are doing these days."—Douglas Irwin, Dartmouth College, author of Free Trade Under FirePraise for the previous editon: "Feenstra covers his topics fabulously. I hope—for the sake of our field—that this book will help to complete a revolution already underway in turning the study of international trade from speculation into a science."—Donald Davis, Columbia UniversityPraise for the previous editon: "Robert Feenstra is to be congratulated on producing this excellent book, which should be on the bookshelf of anyone interested in trade theory and empirical research on international trade."—Sisira Jayasuriya, Economic Record