While considerable progress has been made in analyzing the
formulation of international economic policies, the existing
literature remains deficient in several respects. First, the
existing models take a relatively simplistic view of the
political-economy environment. For example, in contrast to the
observed reality, a large majority of the models view the
government as a monolithic entity. Second, there is only limited
recognition of the political-economy interactions between interest
groups across national borders. Third, dynamic factors governing
trade policy formulation have been essentially absent in the
literature. Fourth, the empirical work in this area, both
cross-industry within national boundaries and cross-national, is
very much in infancy and in need of further development. Fifth,
other aspects of international economic policy such as foreign aid
and foreign direct investment have been scarcely addressed in the
existing literature. In this volume, edited by Devashish Mitra and
Arvind Panagariya, a group of distinguished scholars in
international trade, especially from the younger generation,
analyzes several of these important but neglected aspects of the
political economy of international economic policy. The volume
contains 12 essays topped by an introduction by the editors. The
contributors to this volume are Alok Bohara, Carl Davidson, David
Feldman, Kishore Gawande, Amy Glass, Omer Gokcekus, Keith Hall,
William Kaempfer, Justin Knowles, Pravin Krishna, Phil Levy, Chris
Magee, Steve Matusz, Wolfgang Mayer, John McLaren, Devashish Mitra,
Alex Mourmouras, Doug Nelson, Arvind Panagariya, Martin Richardson,
Martin Ross, Kamal Saggi and Ed Tower. The volume makes major
advances in the area of political economy of trade, aid and
investment policy, and therefore will be of considerable interest
to academic researchers and students of international economics.
Because of its obvious focus on the process of policy formulation,
economists as think tanks, international institutions such as the
World Bank, International Monetary Fund and World Trade
Organization, and trade-policy analysts in developed and developing
countries will also read it.
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