bluuebunny/crossref_metadata_2025_split huggingface dataset:
Basis of Inter-industry Trade
Authors: Acharyya Rajat 
Published: April 2023

Abstract
This chapter introduces the basis of inter-industry trade and exchange of goods between nations: Why or when two nations trade with each other and what governs the pattern or direction of trade between them? Arbitrage is shown to be the basic force behind inter-industry trade, the scope of which arises from price differences across nations due to difference in any of the three fundamentals—technology, abundance or scarcity of factors of production, and tastes. Relative price differences that essentially reflect comparative advantage can also arise due to public policies. Development of hard infrastructure like paved roads and improved sea-ports generates positive externalities by lowering the cost of transporting and shipping of goods and thus establishes comparative advantage in goods. Similarly, development of infrastructure for ICT may promote virtual trade in services. In contrast, lax implementation of environmental standards in a country may establish a perverse comparative advantage for it in dirty goods—goods that pollute the environment—and lead to ecological dumping and unfair trade. This chapter also introduces to the students trade in intermediate goods, which now dominates the world trade, arising from fragmentation of vertical stages of production with different countries producing and specializing in different stages of production, known as global value chains. Fundamental determinants of such vertical specialization are again technology and/or abundance of factors intensively used in the stage of production in which the country specializes. Finally, this chapter discusses Balassa’s concept of RCA as an empirical measure of comparative advantage.
Gains from Trade
Authors: Acharyya Rajat 
Published: April 2023

Abstract
This chapter discusses the normative aspect of international trade and exchange, viz., the Gains from Trade Theorem which is the essence of Ricardo’s doctrine of comparative cost advantage. It demonstrates that if each country exports the good in which it has a comparative (cost) advantage then trade is a positive-sum game. That is, free trade is beneficial for all the trading partners. Gain from trade is not a Pareto statement though, since trade creates both winners and losers. It only ensures that if a compensation principle is applied whereby gains are forced to compensate losers for their losses, then free trade is Pareto superior to autarchy or no trade. Sources of such gains from trade are discussed and illustrated by decomposing the overall gain into consumption (or exchange) gain and production (or specialization) gain. But, gains from trade may not always be realized and this chapter provides the sufficient conditions for gains from trade in terms of tangency and convexity conditions, and highlights the role of technology (or returns to scale) in this context.
International Equilibrium and the Terms of Trade
Authors: Acharyya Rajat 
Published: April 2023

Abstract
With opening up of trade, arbitrage and free movements of goods across nations would lead to convergence of autarchic prices in the two countries. At which level does the post-trade prices converge, or the terms of trade (ToT) settle? This chapter looks into this dimension and provides an answer to this question by characterizing international equilibrium. The offer curve technique is used for determining the ToT at the international equilibrium. Existence, uniqueness, and (Walrasian) stability of international equilibrium are studied graphically in terms of properties of the offer curves as well as algebraically in terms of the properties of excess demand functions for the goods traded. Finally, welfare properties of the international equilibrium are discussed and gains from trade theorem are revisited by introducing the concept and properties of trade indifference curves.
Factor Endowment and Trade
Authors: Acharyya Rajat 
Published: April 2023

Abstract
An alternative source of comparative advantage of nations and explanation of the basis of trade was offered by Eli Heckscher (1949) and Bertil Ohlin (1933). Their analyses that related pattern of trade of a country with its relative factor endowment abundance later came to be known as the Heckscher-Ohlin (HO) theory. Factor abundance of a country, that determines its pattern of trade, is defined in terms of factor proportions and hence this theory or explanation of pattern of trade is also known as the Factor Proportions Theory. This chapter discusses this explanation of the pattern of trade in terms of what is known as the Heckscher-Ohlin-Samuelson (HOS) model. Along with the basic properties of the HOS model and the HO theorem, three other important theorems—Stolper-Samuleson theorem, Rybczynski theorem, and Factor Price Equalization theorem—constituting the core results in the HOS model are also discussed.
Quantitative Restrictions, Non-tariff Barriers, and Equivalence
Authors: Acharyya Rajat 
Published: April 2023

Abstract
Quantitative restrictions (QRs) on trade and non-tariff barriers (NTBs) are prevalent in many countries. These QRs and NTBs take many forms like import quota, export quota or voluntary export restraint (VER), content protection scheme and product standards. This chapter discusses costs and benefits of trade restrictions through import quota and voluntary export restraint (VER). It also provides a comparison between equal-import quota and tariff, a topic of discussion that has attracted a lot of interest among economists since Jagdish Bhagwati’s price-equivalence result in 1965. Similar to this, equivalence between quota imposed by a country on its imports and a VER negotiated with its trading partner that yields equal-import is also discussed.
Political Economy of Trade Policy
Authors: Acharyya Rajat 
Published: April 2023

Abstract
In a democratic political regime and governance, trade policies are often determined by political economy considerations. These include loss of political support and the consequent political risk of being overthrown from power if a trade policy creates more losers than winners and lobbying by competing interest groups and potential beneficiaries of a trade policy. Politically optimum trade policies thus are actually quite different from the economically optimum policies. At the same time, restrictive trade policies that generate rents for some domestic economic agents—such as an import quota generating scarcity rent for the import license holders—may trigger rent-seeking lobbying that use up scarce real resources that could have been otherwise used in productive purposes. The economy thus produces less and thereby experiences a welfare loss due to such directly unproductive profit-seeking (or DUP) lobbying activities over and above the usual loss from trade protection. This chapter discusses these aspects of political economy of trade policy choice and rent-seeking lobbying activities that it may lead to.
Multilateralism and Regionalism
Authors: Acharyya Rajat 
Published: April 2023

Abstract
Since the 1990s, there has been a spectacular upsurge in the number of regional trade agreements (RTAs) amongst a group of nations in a particular region, usually the neighbours, for freer trade and unified trade policies within that region. Building upon reciprocated and coordinated trade policy liberalization, member countries engage in deeper and broader levels of economic cooperation through such RTAs including fiscal and monetary policy coordination. BENELUX and subsequently the EU are the two glaring examples in this regard. The RTAs that have emerged across the globe after 1990s, however, differ from those after the WW II in motivation as well as in character. Strategic reasons, coordinating on product standards and environmental protection, and the like now govern these RTAs more than the motive of realizing welfare gains through trade creation and trade diversion a la Jacob Viner. But, this regional approach has slowed down the momentum in the multilateral approach to free trade negotiations, and in many cases has undermined it. Moreover, regional agreements have often overlapped leading to what Jagdish Bhagwati calls spaghetti bowl effect, which is certainly not the best way of organizing world trade. This has raised serious concern over the direction of the world trading system in future. Why bilateral or regional trading arrangements have been the dominant approach to free trade in history as well as in contemporary times? Is regionalism a stumbling block or a stepping stone to global free trade? This chapter addresses these issues.
Foreign Capital Inflow, Multinationals, and Migration
Authors: Acharyya Rajat 
Published: April 2023

Abstract
Inter-country immobility of capital and labour assumed in the neoclassical trade models is not what we actually see around us. Rather large capital flows and labour migration can be observed along with commodity movements much before the present waves of globalization. This chapter discusses the causes and consequences of such factor flows on welfare and employment of the host country separated from as well as in conjunction with commodity trade. An important dimension of capital inflows is the foreign direct investment (FDI) by the multinational corporations through setting up of subsidiaries in host countries or through joint ventures, takeovers, acquisitions and mergers. A lot of FDI is also taking place over the last two decades in particular through fragmentation and outsourcing of production processes that has been made possible by the advent of information and communication technology. Feasibility of fragmentation of vertical chain of production processes has also led to a production process known as global value chain (GVC) whereby a single finished product results from manufacturing and assembly in multiple countries, with each stage generating and adding value to the end product. GVCs provide opportunities for the developing countries to increase their participation in global trade and, most importantly, to diversify their exports by specializing only in fragments of vertical stages of production according to their relative strengths and comparative advantages. FDI, fragmentations, and different aspects of GVC such as its measurement and potential gains for the developing countries are elaborately discussed in this chapter.
Balance of Payments and National Income Accounting
Authors: Acharyya Rajat 
Published: April 2023

Abstract
This chapter discusses two sets of issues. First set concerns the different components of the Balance of Payments (BOP) accounts, and the concepts of balance and equilibrium in the external payments of a country. BOP is a record of values of all economic transactions of a country with the rest of the world in a particular year. It also defines different sub-accounts and balances thereof, such as the trade account, the current account, and the capital account. The second set of issues concerns how the basic national income identities can be extended to include external trade and transfers of a country. An important distinction that is made in this context is between the Gross National Product (GNP) and the Gross Domestic Product (GDP), which differ from each other in presence of factor incomes from abroad and payments made to foreign nationals for their services.
National Income and Current Account Balance: The Income Approach
Authors: Acharyya Rajat 
Published: April 2023

Abstract
The accounting identities in a Balance of Payments Accounts of a country based on ex post or realized values cannot be used as cause-and-effect relations. Study of cause-and-effect relations and determinations of national income in an open economy requires actual or ex post values being replaced by plans of relevant economic agents. This chapter deals with this aspect by specifying relationship between the national income and the trade or the current account balances in terms of plans or behavioural functions. Three main issues are discussed. First, how an equilibrium in an open economy evolves where plans of all economic agents are simultaneously realized. The level of national income and trade (or current) account position of a country at equilibrium are the two elements that are of particular interest in this context. Second is how the equilibrium national income and trade balance change when the spending pattern of private economic agents as well as the government changes. These effects are discussed in both absence and presence of international transmission mechanisms by which a change in the national income of a country affects the national incomes of its trading partners and vice versa. Third, the chapter discusses an interesting debate over plausible effects of a unilateral transfer of income from one country to the other. The context of this debate is the contrasting opinion of John Maynard Keynes and Bertil Ohlin in 1929 on effects of war reparations or compensations paid by Germany to the Allied countries in the Europe.
BOP Adjustment Policies in a Pegged Exchange Rate Regime
Authors: Acharyya Rajat 
Published: April 2023

Abstract
The underlying assumptions of the income approach discussed in an earlier Chapter 21 were constant commodity prices and a fixed exchange rate, both of which prohibit automatic adjustments towards a Balance of Payments (BOP) equilibrium. For example, when the exchange rate is pegged with an overvaluation of the domestic currency vis-à-vis the foreign currency, the country’s BOP is in deficit. Under such circumstances, the national governments or the monetary authorities may undertake policies that aim at lowering the BOP deficit. This chapter discusses such policies that aim at correcting the BOP imbalances under a pegged exchange rate regime. These policies can be categorized broadly into expenditure reducing and expenditure switching policies. Of course, these policies are only temporary in nature and can hardly be a solution to the BOP crisis in the long run. The expenditure reducing and switching policies are associated respectively with the income (or absorption) approach and the elasticity approach which are, however, restrictive and incomplete. Whereas the income or absorption approach assumes constant prices, the elasticity approach assumes constant national incomes and makes a partial equilibrium analysis. A complete and more comprehensive approach is the synthesis of the two allowing for both prices and incomes to adjust. This chapter also discusses this synthesis approach.
Money, Price, and Exchange Rate
Authors: Acharyya Rajat 
Published: April 2023

Abstract
This chapter discusses three important elements of the analyses of BOP adjustment and exchange rate determination that were set aside in the earlier chapters: flexible commodity prices, monetary policy of a country’s central bank, and capital account transactions such as capital mobility or asset trading. Without these elements being explicitly taken into account, analysis of BOP adjustment and a theory of exchange rate determination would remain incomplete. Two variants of these relationships are considered. First is the monetarist approach to BOP that, in contrast to the elasticity and the absorption approaches, postulates that a BOP imbalance is essentially a monetary phenomenon and is transient in nature. Second is the Mundell-Flemming tradition of monetary approach under the Keynesian assumption of sticky wages and prices with capital mobility. Income change is the key element in the monetary adjustments in this approach. This approach is essentially the open economy extension of the Keynesian IS-LM framework, known as the Mundell-Flemming model. The main point of discussion here is the relative efficacy of fiscal and monetary policies in changing the output levels, with the BOP adjusting under a fixed exchange rate through endogenous capital mobility. Another dimension of discussions in this chapter is the monetarist approach to the exchange rate determination.
Introduction
Authors: Driemel Imke 
Published: April 2023

AbstractThis chapter introduces the phenomenon of pseudo-noun incorporation, the way it has been diagnosed in the past, and why there is a need for a theory that unifies all properties emerging from the cross-linguistic picture. Established accounts based on the size or the position of the pseudo-incorporated noun are not sufficient to capture the case, scope, binding, control, and movement properties with one account. The account of this book pursues the idea that the effects of pseudo-noun incorporation are not related to size or position, but to category. Through the investigation of eleven different noun types across five different languages, we can identify the core diagnostics of pseudo-noun incorporation and compare them to a very related phenomenon, which is often discussed as differential object marking. This serves as the motivation in this chapter to conduct a detailed cross-linguistics study.
Differential object marking
Authors: Driemel Imke 
Published: April 2023

AbstractChapter 8 is dedicated to the noun types that have been identified in the previous chapters as DOM-marked. This is the case for a class of nouns in Tamil and Korean. As expected, these noun types do not show any movement restrictions, akin to case-marked objects in the respective languages. Moreover, their binding, control, and scope properties are not affected by case loss. Thus, Tamil and Korean (possibly also Hindi) provide evidence for the view that pseudo-incorporation and differential object marking do not present two sides of the same coin. On the contrary, each grammatical process has to be accounted for independently, but ideally with the same theoretical account for optional case marking. Furthermore, two anomalies in the data set are discussed, with interesting consequences for control theory.
The job ladder
Authors: Fields Gary S. , Gindling T. H. , Sen Kunal , Danquah Michael , Schotte Simone 
Published: April 2023

Abstract
This chapter outlines the content and scope of the book. Further, it sets out the intended intellectual contribution of the book. Using a range of countries from the Global South, the book examines heterogeneity within informal work by applying a common conceptual framework and empirical methodology. The country studies use panel data to study the dynamics of worker transitions between formal and heterogeneous informal work. The range of country studies are drawn from Asia, Latin America, the Middle East and North Africa, and sub-Saharan Africa. A key contribution of the book is that it offers a more nuanced view of informality that differentiates not only between formal and informal, self-employed, and wage-employment but also between upper-tier and lower-tier informality.
Transforming informal work and livelihoods in China
Authors: Lin Carl , Ye Linxiang , Zhang Wei 
Published: April 2023

Abstract
The informal sector has long been viewed as a locus of the disadvantaged, unskilled, and inexperienced workers in under-developed and developing economies. Workers in the informal sector, however, can learn skills and gain experience that could help them switch to better-paying jobs in the formal sector. But evidence of this is limited. China constitutes an important case study because it is the most populous country and has the largest labour force, consisting of over 290 million rural-to-urban migrants whose employment is mostly informal. Using three waves of nationally representative household surveys over 2014–2018, we study how the livelihoods of Chinese workers change when transitioning to different work status groups within or between formal and informal sectors. Our results show that transitioning jobs from the informal to the formal sector and from the self-employed to the wage-employed increases earnings, which improves the livelihoods of Chinese workers.
Moving up or down the job ladder in India
Authors: Natarajan Rajesh Raj , Schotte Simone , Sen Kunal 
Published: April 2023

Abstract
The Indian labour market is characterized by a high level of informality with large numbers of workers in poorly paid ‘lower-tier’ informal jobs and somewhat better paid ‘upper-tier’ informal jobs, which do not have the same benefits and security of tenure as formal jobs. We examine the likelihood of individuals moving up from informal jobs to formal jobs (and vice versa) and from lower-tier to upper-tier informal jobs using a longitudinal data set for India. We find that self-employed workers exhibit relatively more mobility than wage workers. Among wage workers, we find high persistence rates for formal wage-employed and lower-tier informal wage-employed. As expected, our results suggest substantial income gains for workers experiencing upward transition. Our results also suggest that lower-tier informal workers, whether in self-employment or wage-employment, have limited upward transition possibilities and are in a ‘dead-end’ work status.
Progress and stagnation in the livelihood of informal workers in an emerging economy
Authors: Rizky Mayang , Suryadarma Daniel , Suryahadi Asep 
Published: April 2023

Abstract
In this chapter, we use long-spanning individual longitudinal data to examine the long-term labour market outcomes of low-tier informal workers in Indonesia. We investigate their characteristics, calculate the extent of switching and identify the characteristics of those who have switched. Finally, we estimate the earnings premium of switching. We find that individuals are negatively selected into low-tier informal work. Almost half of individuals who started out as a low-tier informal workers remained as low-tier informal workers through the next 8–19 years. The other half switched, on average, three times. Most switches take place from low-tier informal to low-tier formal work. High-tier jobs are relatively closed off to those who started their career as low-tier informal workers. The earnings premium that low-tier informal workers could gain by switching is large and statistically significant. An effective policy, therefore, is to support low-tier informal workers to improve their livelihoods by becoming low-tier formal workers.
Transforming informal work and livelihoods in Costa Rica and Nicaragua
Authors: Alaniz Enrique , Gindling T. H. , Mata Catherine , Rojas Diego 
Published: April 2023

Abstract
The authors of this chapter divide workers into six work status groups: formal self-employed, upper-tier informal self-employed, lower-tier informal self-employed, formal wage-employed, upper-tier informal wage-employed, and lower-tier informal wage-employed. In both Costa Rica and Nicaragua earnings are highest for formal work, next for upper-tier informal, and last for lower-tier informal. Mobility out of lower-tier informal is higher than out of all other work status groups, and most transitions are into a higher-wage work status. This suggests that lower-tier informal work in Costa Rica and Nicaragua is not a ‘dead end’ and that there is scope to promote transitions to higher work status groups. Transitions from all types of informality into formality are more common in Costa Rica than in Nicaragua, partly due to the larger proportion of formal workers within Costa Rica. Regressions of transitions on worker characteristics suggest that policies of providing vocational training and formal education to informal workers can promote transitions into better-paying work status groups.