The papers in this collection give an overview of the latest work in international trade theory. The contributors include many of the most innovative contemporary theorists, and they provide an unrivalled introduction to the latest developments in one of the most dynamic sub-fields of economics.

List of conference participants; Part I. 1. Introduction: 1. Scope of the volume Wilfred J . Ethier, Elhanan Helpman and J. Peter Neary; 2. Ronald Jones and the theory of international trade Wilfred J. Ethier; Appendix: professional publications of Ronald W. Jones; Part II. History, Geography and the Theory of Trade: 3. The hub effect: or, threeness in interregional trade Paul Krugman; 4. International trade and factor mobility with an endogenous land frontier: some general equilibrium implications of Christopher Columbus Ronald Findley; 5. Directions of lumpy country trade Alan V. Deardorff; Part III. The Structure of Simple Trade Models: 6. Job market preferences and international trade Roy J. Ruffin; 7. Production indivisibilities in a short-run trade model Wolfgang Mayer and Jun Li; 8. Firms, entry and hysteresis in the Heckscher-Ohlin-Samuelson model of production and trade Michihiro Ohyama; Part IV. Policy towards International Trade: 9. Welfare effects of tariffs and investment taxes J. Peter Neary; 10. The case of the vanishing revenues: auction quotas with oligopoly Kala Krishna; Part V. Trade, Growth and Dynamics: 11. Prices of goods and factors in a dynamic stochastic economy Avinash Dixit; 12. Capital market imperfections and the infant industry argument for protection Eric W. Bond; 13. Endogenous real business cycles and international specialization Kazuo Nishimura and Makoto Yana; 14. Impact of government on growth and trade Anne O. Krueger and David W. H. Orsmond; 15. Long-run production frontiers for the Jones specific-factors model with optimal capital accumulation James R. Markusen and Richard Manning; 16. Hysteresis in the trade pattern Gene M. Grossman and Elhanan Helpman; Index.