The contributors to this book, from the US and Japan, explore the main issues involved in the international trade, foreign direct investment, and macro/financial relations of the United States and Japan and provide guidance to policymakers for measures to help overcome Japan's economic stagnation since the early 1990s.The book is divided into three parts. Part I contains an empirical analysis of trade diversion under the North American Free Trade Agreement (NAFTA), a theoretical analysis of time in determining the structure and effects of trade with an application to Japan, and an empirical analysis of Japan's changing import behavior. Part II is focused on foreign direct investment (FDI), trade, and the behavior and structure of Japanese firms. Part III deals with macro/financial issues of current interest and importance in Japan. The analytical focus of the chapters is intended to enhance the understanding of the issues addressed and to provide some guidance to policymakers in the design of measures that will improve economic efficiency and welfare and help to overcome the economic stagnation that Japan has experienced in the past decade or more. Economists, political scientists and policymakers will find the analysis provided in this volume invaluable in understanding the Japanese economy and economic relations between Japan and the United States.

This distinctive book sets forth, on an advanced level, various methods for the quantitative measurement of important relationships at issue in areas of the balance of payments and international trade and welfare. The results achieved in recent studies are presented and the directions for new research are indicated. This book is composed of two main parts. Part I deals with the balance of payments and consists of the first half of the book. One of the longest and almost important chapters of this part talks about, at length the time-series analysis of the demand for imports and exports from the point of view of an individual country. This subject has a long and somewhat checkered history dating from the 1940's, when a number of estimates using least squares multiple regression methods were made of import and export demand functions for the interwar period. The noteworthy feature of many of these estimates was that they suggested relatively low price elasticities of demand in international trade. The implication was thus drawn that the international price mechanism could not be relied on for balance-of payments adjustment purposes. This book talks about the topics of theory and measurement of the elasticity of substitution in international trade, estimating the international capital movements, and forecasting and policy analysis with econometric models. Part II deals with international trade and welfare. While, there are many other books dealing with trade theory, this title focuses on a narrower range of topics that are not always mentioned or understood by individuals, such as the theory and measurement of trade dependence and interdependence, the analysis of the component factors a country has that affects how its export growth is over time, and the welfare effects of trade liberalization This book serves as a guide and reference work for economics graduate students, academicians, and practicing economists in private and governmental circles. They will find this book a valuable and highly useful. "Edward E. Leamer" is Chauncey J. Medberry Professor of Management at the UCLA department of Economics. He is a research associate at the National Bureau of Economic Research, a fellow at the American Academy of Arts and Sciences and the Econometric Society, and director of the UCLA Anderson Forecast. He has published over 100 articles and 4 books. "Robert M. Stern" is Professor emeritus of Economics and Public Policy at The University of Michigan, Ann Arbor. He is the co-director of the Research Seminar in International Economics at the Gerald R. Ford School of Public Policy. He is also head of the Ford School International Concentration and the Ford school program of research on U.S. Japan international economic relations.

The steady progress of global economic integration and trade-policy liberalization facilitated by the GATT and WTO over the past half-century has been accompanied by persistent warnings of the consequences for wages, employment and working conditions. Indeed, over the last decade, labor interests in the west have sought to slow the pace of international trade negotiations, seeking some protections in the WTO Charter itself and in individual trade agreements. The central focus of this collection is to provide the reader access to the seminal papers analyzing the accommodation of labor interests within the WTO. This comprehensive volume establishes an understanding of the interaction between global goods, capital and labor markets and the national government institutions that regulate their function. In selecting papers for this volume, the editors have identified the most important contributions to the debate.

This distinctive book sets forth, on an advanced level, various methods for the quantitative measurement of important relationships at issue in areas of the balance of payments and international trade and welfare. The results achieved in recent studies are presented and the directions for new research are indicated. This book is composed of two main parts.Part I deals with the balance of payments and consists of the first half of the book. One of the longest and almost important chapters of this part talks about, at length the time-series analysis of the demand for imports and exports from the point of view of an individual country. This subject has a long and somewhat checkered history dating from the 1940's, when a number of estimates using least squares multiple regression methods were made of import and export demand functions for the interwar period. The noteworthy feature of many of these estimates was that they suggested relatively low price elasticities of demand in international trade. The implication was thus drawn that the international price mechanism could not be relied on for balance-of payments adjustment purposes.This book talks about the topics of theory and measurement of the elasticity of substitution in international trade, estimating the international capital movements, and forecasting and policy analysis with econometric models. Part II deals with international trade and welfare. While, there are many other books dealing with trade theory, this title focuses on a narrower range of topics that are not always mentioned or understood by individuals, such as the theory and measurement of trade dependence and interdependence, the analysis of the component factors a country has that affects how its export growth is over time, and the welfare effects of trade liberalizationThis book serves as a guide and reference work for economics graduate students, academicians, and practicing economists in private and governmental circles. They will find this book a valuable and highly useful.Edward E. Leamer is Chauncey J. Medberry Professor of Management at the UCLA department of Economics. He is a research associate at the National Bureau of Economic Research, a fellow at the American Academy of Arts and Sciences and the Econometric Society, and director of the UCLA Anderson Forecast. He has published over 100 articles and 4 books.Robert M. Stern is Professor emeritus of Economics and Public Policy at The University of Michigan, Ann Arbor. He is the co-director of the Research Seminar in International Economics at the Gerald R. Ford School of Public Policy. He is also head of the Ford School International Concentration and the Ford school program of research on U.S. Japan international economic relations.

This collection of original essays focuses on issues of international trade and trade policy in a world that is undergoing structural adaptation and in the face of a serious increase in the US trade deficit. They bring a new consolidation of analytical perspective to a wide variety of current trade policy issues.In their overview chapter, Alan V. Deardorff and Robert M. Stern discuss developments in trade and protectionism, review the case for free trade and address the arguments in favor of trade intervention. Rudiger Dornbusch and Jeffrey Frankel analyze the macroeconomic setting in which changes have been made in US tariffs and NTBs.Stephen P. Magee and Leslie Young develop a model of endogenous protection and use it to search for microeconomic and macroeconomic variables that may help to explain changes in tariff and nontariff protection in the US since 1900. Paul Krugman takes up the question of identifying strategic sectors and the extent to which international competition and national government policies may affect the returns to such sectors under conditions of imperfect competition or when externalities are present. Avinash Dixit analyzes the responses that the US might make to other countries' trade policies in terms of how these policies affect US real national income and national security. He concludes that the US could use strategic advance responses to alter other countries' trade policies in a mutually beneficial way.Richard N. Cooper evaluates trade policy as foreign policy by looking at changes through three periods of US history. T.N. Srinivasan scrutinizes the national defense argument for government intervention in foreign trade. John H. Jackson in discussing alternative negotiation approaches for the conduct of US trade policies observes that the pursuit of multilateralism may be frustrating and that what may be needed instead is a "minilateral" approach to trade liberalization. In conclusion, W. Max Corden offers a package of rules that he believes may be both desirable and possible for the international trading system to attain.Robert M. Stern is Professor of Economics at the University of Michigan and Director of the Institute of Public Policy Studies. He is coauthor with Allan V. Deardorff of The Michigan Model of World Production and Trade (MIT Press 1985.)

The Oxford Handbook on the World Trade Organization provides an authoritative and cutting-edge account of the World Trade Organization. Its purpose is to provide a holistic understanding of what the WTO does, how it goes about fulfilling its tasks, its achievements and problems, and how it might contend with some critical challenges. The Handbook benefits from an interdisciplinary approach. The editorial team comprises a transatlantic partnership between a political scientist, a historian, and an economist. The distinguished and international team of contributors to the volume includes leading political scientists, historians, economists, lawyers, and practitioners working in the area of multilateral trade. All the chapters present original and state-of-the-art research material. They critically engage with existing academic and policy debates, and also contribute to the evolution of the field by setting the agenda for current and future WTO studies.The Handbook is aimed at research institutions, university academics, post-graduate students, and final-year undergraduates working in the areas of international organization, trade policy and negotiations, global economic governance, and economic diplomacy. As such, it should find an enthusiastic readership amongst students and scholars in History, Economics, Political Science, International Relations, Public Policy, and Law. Equally important, the book should have direct relevance for diplomats, international bureaucrats, government officials, and other policy-makers and practitioners in the area of trade and economic governance.

Regulations and enforcement decisions that at first appear to have only a domestic impact can have substantial spillover effects on other nations' economies. Experience has shown time and again that there is no reason to expect that these effects are confined to jurisdictions at the same level of development. Governments on both sides of the Atlantic recognize this, yet their responses in many policy areas are not aligned - sometimes deliberately so. This creates a complex regulatory landscape that appears to be the product of both cooperation and competition, and which can only be fully understood by looking through a number of disciplinary lenses.Drawing on some of the best legal, economic and political science expertise from both sides of the Atlantic, as well as on the knowledge of officials and private practitioners with experience in both industrialized and developing countries, this timely book assesses the systemic, global implications of transatlantic regulatory cooperation and competition. Insights from thematic papers are integrated with those from sector-specific analyses, and a rich set of implications for policymakers, business and civil society is offered.

This book brings together a collection of papers that Robert M. Stern and his co-authors have written in recent years. The collection addresses a variety of issues pertinent to the global trading system. One group of papers deals with globalization in terms of what the public needs to know about this phenomenon and the role of the World Trade Organization (WTO), whether some countries may be hurt by globalization, how global market integration relates to national sovereignty, and how and whether considerations of fairness are and should be dealt with in the global trading system and WTO negotiations. A second group of papers consists of analytical and computational modeling studies of multilateral, regional, and bilateral trading arrangements and negotiations from a global and national perspective for the United States and other major trading countries. The remaining papers include an empirical analysis of barriers to international services transactions and the consequences of liberalization, and issues of international trade and labor standards.

This book brings together a collection of papers that Robert M Stern and his co-authors have written in recent years. The collection addresses a variety of issues pertinent to the global trading system. One group of papers deals with globalization in terms of what the public needs to know about this phenomenon and the role of the World Trade Organization (WTO), whether some countries may be hurt by globalization, how global market integration relates to national sovereignty, and how and whether considerations of fairness are and should be dealt with in the global trading system and WTO negotiations. A second group of papers consists of analytical and computational modeling studies of multilateral, regional, and bilateral trading arrangements and negotiations from a global and national perspective for the United States and other major trading countries. The remaining papers include an empirical analysis of barriers to international services transactions and the consequences of liberalization, and issues of international trade and labor standards.

International trade and investment in services are an increasingly important part of global commerce. Advances in information and telecommunication technologies have expanded the scope of services that can be traded cross-border. Many countries now allow foreign investment in newly privatized and competitive markets for key infrastructure services, such as energy, telecommunications, and transport. More and more people are travelling abroad to consume tourism, education, and medical services, and to supply services ranging from construction to software development. In fact, services are the fastest growing components of the global economy, and trade and foreign direct investment (FDI) in services have grown faster than in goods over the past decade and a half.
International transactions, however, continue to be impeded by policy barriers, especially to foreign investment and the movement of service-providing individuals. Developing countries in particular are likely to benefit significantly from further domestic liberalization and the elimination of barriers to their exports. In many instances, income gains from a reduction in protection to services may be far greater than from trade liberalization in goods.
In light of the increasing importance of international trade in services and the inclusion of services issues on the agendas of the multilateral, regional and bilateral trade negotiations, there is an obvious need to understand the economic implications of services trade and liberalization. A Handbook of International Trade in Services provides a comprehensive introduction to the subject, making it an essential reference for trade officials, policy advisors, analysts, academics, and students. Beginning with an overview on the key issues in trade in services and discussion of the GATS, the book then looks at trade negotiations in the service sector, the barriers to trade in services, and concludes by looking at a number of specific service sectors, such as financial services, e-commerce, health services, and the temporary movement of workers.

Because of the close links between the United States and Japan in trade, foreign direct investment, financial flows, exchange rates, international prices, and government policies, it is important to develop a better understanding of these links and how they may be turned to the advantage of all involved by improvements in the international policy environment. This book deals with the potential for such improvements as part of formal government-to-government negotiations in the multilateral context in the World Trade Organization (WTO), regionally in the Asia-Pacific Economic Cooperation (APEC) forum, and bilaterally with the administration of national trade laws and the negotiation of free trade agreements.
The chapters represent a spectrum of approaches, including theoretical analysis, quantitative measurement, and evaluations of policies and institutions from economic and legal perspectives. The multi-lateral issues cover the analysis of the economic effects of a new WTO negotiating round and the range of issues that are to be addressed there, including reform of Japan's agricultural policies, services liberalization, antidumping, intellectual property rights, and trade and the environment. The regional issues include theoretical and simulation analysis of the benefits of preferential trading arrangements and the policy of open regionalism that is being sought by APEC members. U.S.-Japan bilateral relations are studied by analyzing the major actions and positions taken by the two nations in the context of their national trade laws and policies, how trade policies are implemented, the effects of bilateral trade agreements on the United States and Japan, and the interplay of legal decisions reached in WTO actions with bilateral and unilateral measures undertaken by the two nations.
The book is designed for a broad audience consisting of academic economists, lawyers, policymakers, and students interested in U.S.-Japan international economic relations.
Robert M. Stern is Professor Emeritus of Economics and Public Policy, University of Michigan.

This book contains selected papers from the First World Services Congress, a forum designed to enhance awareness of the increasingly important role of services in the global economy and to reach out to governments, the business community, international organizations, academicians, and the media. The Congress served as a vehicle for the presentation and discussion of academic research on the entire spectrum of services issues, as well as business options and issues.
The volume is divided into three parts. Part 1 deals with measurement, modeling, and analysis and covers such topics as measuring productivity in services; forecasting trade in services; data needs for services negotiations; modeling the economic effects of barriers to trade in services; imperfect competition and services liberalization; multilateral and regional liberalization of services; and measurement of service sector performance. Part 2 examines the role of services in developing economies, including geographic determinants of business services location; electronic commerce; and case studies of the structure and potential for services liberalization in India, Egypt, Senegal, Kenya, and South Africa. Part 3 explores options and issues in the Services 2000 negotiations to be conducted under the auspices of the WTO, covering telecommunications policy reform; insurance services; media services; negotiating proposals for effective services liberalization; and the formation of negotiating coalitions. An appendix contains recommendations on issues to be addressed in the Services 2000 negotiations, as agreed by business and government representatives.
At the cutting edge of research on global services issues, this volume will be of special interest to scholars and students in economics, business administration, public policy, and international political economy, as well as government officials and staff and business executives.
Robert M. Stern is Professor Emeritus of Economics and Public Policy, University of Michigan.

As tariffs on imports of manufactures have been reduced as a result of multi-lateral trade negotiations, interest in the extent to which existing nontariff barriers may distort and restrict international trade is growing. Accurate and reliable measures are needed in order to address the issues involving the use and impacts of nontariff barriers. This study assesses currently available methods for quantifying such barriers and makes recommendations as to those methods that can be most effectively employed. The authors focus both on the conceptual issues arising in the measurement of the different types of nontariff barriers and on the applied research that has been carried out in studies prepared by country members of the OECD Pilot Group and others seeking to quantify the barriers. Nontariff barriers include quotas, variable levies, voluntary export restraints, government procurement regulations, domestic subsidies, and antidumping and countervailing duty measures. The authors discuss the many different methods available for measuring the effects of these and other nontariff barriers. Illustrative results are presented for industrial OECD countries, including Australia, Canada, Germany, Norway, the European Union, the United Kingdom, and the United States. Finally, the authors offer guideline principles and recommend procedures for measuring different types of nontariff barriers. Economists, political scientists, government officials, and lawyers involved in international trade will find this an invaluable resource for understanding and measuring NTBs. Alan V. Deardorff and Robert M. Stern are Professors of Economics and Public Policy, University of Michigan.

Quantitative Analysis of Newly Evolving Patterns of International Trade offers a variety of perspectives on new forms and developments of international trade and related activities for Japan, the United States, China, and some other important trading countries, to develop new methods and data for measuring the factor contents of emerging new modes of international trade. Such methods and data are crucially important for evaluating impacts of the new modes on factor markets in the United States, Japan, and other major trading countries, and also for forecasting the future development of world trade and foreign direct investment (FDI), evaluating welfare gains from trade, estimating impacts of free trade agreements, and designing effective trade and FDI policies.

This is a thorough revision of a successful introductory text on psychophysiological recording. The authors include information on the most up-to-date equipment used today to do brain scanning and discuss other equipment not available in 1980. A new chapter on signal processing and analysis has been added, and discussions cover nonlinear systems as well as cognitive psychophysiology.