A Book of Collected Articles

Protection, Growth and Trade: Essays in International Economics was published by Basil Blackwell Ltd in 1985, and went out of print in 1993. It contains twenty articles by Max Corden in the broad area of trade theory published between 1957 and 1984. It includes some of his best known and most cited articles - on effective protection, on the Dutch Disease, on urban unemployment, and on customs union theory. Most were published in various journals, but some appeared in books no longer in print. The latter category includes "exchange rate protection" (an early analysis of a very topical issue), and "the enclave approach" (relevant for development economics).

 

Preface

Introduction

PART I NORMATIVE THEORY OF PROTECTION

1

1   The Calculation of the Cost of Protection
3
  Further Notes: The Cost of Protection Revisited  
19
2 Tariffs, Subsidies and the Terms of Trade
29
  Further Notes: Tariffs versus Subsidies
37
3    Monopoly, Tariffs and Subsidies
46
  Further Notes: Monopoly and Economies of Scale
54
4 Economies of Scale and Customs Union Theory
58
5 A Tariff that Worsens the Terms of Trade (with Fred H. Gruen)
69
6 Urban Unemployment, Intersectoral Capital
 
  Mobility and Development Policy (with Ronald F. Findlay)
73

 

PART II EFFECTIVE PROTECTION

95

The Structure of a Tariff System and the Effective Protective Rate  
97
8 Effective Protective Rates in the General Equilibrium   
  Model: A Geometric Note
118
9 The Substitution Problem in the Theory of Effective Protection
125
10   Effective Protection Revisited
141

 

PART III MULTINATIONALS AND TRADE THEORY

155

11  International Trade Theory and the Multinational Enterprise
157
12 The Enclave Approach
178

 

PART IV GROWTH AND TRADE

185

13 Economic Expansion and International Trade: A Geometric Approach 187
  Further Notes: The Effects of Growth on Trade 
192
14 The Effects of Trade on the Rate of Growth
198
  Further Notes: The Effects of Trade on the Rate of Growth (*)
220
15 

Booming Sector and De-Industrialization in a Small Open Economy

225
  (with J. Peter Neary)
 
16 Booming Sector and Dutch Disease Economics: Survey and Consolidation
246

 

PART V PROTECTION, THE EXCHANGE RATE AND MACROECONOMIC POLICY  

269

17 Exchange Rate Protection
271
18 Relationships between Macroeconomic and Industrial Policies   
288
19 Protection and the Real Exchange Rate
302
20 Real Wage Rigidity, Devaluation and Import Restrictions
311

 

Author Index
327
Subject Index
330