Despite more than a quarter century of intense research into the phenomenon of intra-industry trade (the import and export of goods belonging to the same industry, hereafter abbreviated as IIT), several important puzzles remain: the existence of IIT even at highly disaggregated levels of...

For most developed countries, "opening up" of the economy has meant the reduction of non-prohibitive tariffs and the easing or abolition of quantitative restrictions. For manydeveloping countries and economies in transition, however, it often requires the relaxation of autarkic policies such as...

This paper examines the effects of foreign entry, in the form of either imports or direct foreign investment, into an oligopolistic market. It shows that foreign entry can reduce welfare relative to autarky unless at least some domestic firms exit, or unless the foreign firms capture a very...

Several decades after formally attaining independence, many developing countries continue to trade disproportionately with the European countries that once ruled them. Earlier attempts to examine this phenomenon have relied on inappropriate statistical techniques. After reviewing the existing...

This paper offers a critique of recent empirical studies on the impact of labour regulation on industrial performance in India. It begins with a review of earlier studies that tried to infer the effects on manufacturing employment of amendments to the Industrial Disputes Act (IDA) in 1976 and...

This paper adapts an incentive-compatible regulatory mechanism to the problem of taxing a foreign monopolist with unknown costs, when price and quantity contracts cannot be enforced. It is shown that the optimal mechanism involves an import licence fee, and yields zero expected revenue to the...

Most existing models of protection-induced exports, as well as models of intra-industry trade (IIT), are based on imperfect competition in both the home and foreign countries, usually with increasing returns to scale. This paper shows how import quotas can induce exports and IIT in identical or...

Book Review of Jagdish Bhagwati, Arvind Panagariya and T. N. Srinivasan, Lectures on International Trade, Oxford University Press, New Delhi, 2003, pp.xii+602, Rs.750, ISBN 019566442-6