The contributions in this book identify and take up an important problem in international economics -- the split in theoretical and empirical work in international finance and in international trade. This book is unique in attempting to link these two aspects of the international economy...

Orthodox trade theory rests on a number of unrealistic assumptions which include, among others, constant returns to scale in production and perfect competition in product and factor markets. This has led many commentators to express strong skepticism about the policy conclusions flowing from the...