This advanced text successfully links the two fields of trade theory and economic development. It combines mathematical rigour with an exceptional breadth of approaches, including institutions, history and comparative economics. Uniquely, the book focuses not only on countries participating in...

After surveying existing models of retailing, this paper concentrates on the idea that the shop saves its customers costs by assembling goods in one p lace. This introduces an essential nonconvexity and importantly affec ts the conditions under which shops compete with each other and the c...

A customs union is enlarged by the addition of one or more new countries. What should be the consequential change in its common external tariff (CET)? The paper attempts to make this question precise and to apply it to the enlargement of the EC. In many simple trade models the optimal CET is...

Corrupt agents (officials or gangsters) exact money from firms. Corruption affects the number of firms in a free-entry equilibrium. The degree of deep competition in the economy increases with lower overhead costs relative to profits and with a tendency toward similar cost structures. Increases...

The paper investigates a model of "exchange rate protection" by two countries. Either or both countries may protect their tradable sectors by maintaining undervalued exchange rates. The mechanism of protection considered involves a country increasing its national saving rate and exporting...