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Full Description
This book presents competitive trade models to recast them from the perspective of an economy which is beset with corruption and related intermediation that requires some sort of cost. It innovatively transforms traditional models (HOSV, SFM, HO nugget) by treating intermediation as a distinct economic sector that consumes factors of production.
Through rigorous general equilibrium analysis, it also discusses real life events such as trade liberalization, capital inflow, labor immobility, extortion, etc. It is unquestionably an exciting approach to paving the way for future research around trade and development in competitive trade models befitting developing economies where ramifications of corruption and related damages are pervasive.
This book will be of interest to researchers, faculty members, and policy makers working with international trade theory and policy, development economics and labour economics.
Contents
List of Figures. List of Tables. Foreword. Preface. 1. Introduction 2. A Brief Backdrop 3. Transaction Costs of Corruption in Pure Theory of International Trade 4. Trade Reform and Intermediation 5. Traded Goods, Tax and Intermediation - the Role of Corrupt Non-traded Sector 6. Extortion and Informal Sector in a Competitive Trade Model 7. Migration, Informality, and Extortion in a Small Country Trade Model 8. Recessionary Shock and the Informal Sector - Implication for Intermediation 9. Conclusion. References. Index
