International Trade and Economic Development

Reviews / Votes

The title of this new book by Acharyya and Kar says a lot by suggesting that the process of growth and development for most countries is closely linked to the extent of their involvement in international trade. The basic Ricardian concept of comparative advantage shows how all countries can in many ways make use of trade with other countries to support higher rates of growth and development. International trade allows a country to focus on producing not the entire range of commodities consumed, but instead to concentrate on producing the commodities in which it is relatively efficient in production, and all countries have such possibilities. The authors provide ample examples of how countries have raised living standards by taking such advantages provided by globalization. [continued below] Their discussion leads up to the present state of trade in which fragmentation of the production process offers the possibility of a much finer division of labor, opening up a sizable gain when parts and components are themselves tradeable, allowing ever greater gains from trade based on the Ricardian conception. The reader is carefully led through historys gains based on more open capital markets and the re-alignments suggested by comparative advantage. For countries anxious to develop, more open international trade is the basic route to obtain such gains. * Ronald Jones, Xerox Professor of Economics, Economics Department, University of Rochester * This is a magnificent text which fills a real gap with a very lucid and insightful treatment. I recommend it most highly both to all students interested in trade and development and also to the faculty charged with teaching them. * Wilfred J. Ethier, Professor Emeritus of Economics, University of Pennsylvania * The structure of the book differs from that of a typical textbook on international trade. The reader is offered an analysis of the theoretical issues in international trade and economic development in an interconnected way, that is, how global markets affect the countrys economic growth and pattern of development. This is a novel approach, and combined with a rigorous analysis of the topics covered, it will appeal to readers interested in the theoretical aspects of globalisation and development. * Tatyana Chesnokova, Economic Record *