The Political Economy of Trade Policy: Theory, Evidence and Applications is a collection of sole-authored and co-authored papers by Devashish Mitra that have been published in various scholarly journals over the last two decades. It covers diverse topics in the political economy of trade policy, ranging from the role of modeling lobby formation in the context of trade policy determination to its applications to the question of unilateralism versus reciprocity and trade agreements. It also includes the theory and the empirics of the choice of policy instruments. Finally, the book presents the empirical investigation of the Grossman-Helpman "Protection for Sale" model as well as the Mayer "Median-Voter" model of trade policy determination.

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.

Proponents of free trade routinely argue that an important benefit for developing countries is that it provides significant economic opportunities for their asset-less workers. By now, virtually all developing countries, have moved towards integrating themselves more closely with the international economy. To what extent have workers actually benefited from this integration? The Impact of Trade on Labor attempts to piece together broad-based evidence on the effects of trade liberalization on labor markets in developing countries in general, and selected countries from developing Asia in particular. The analysis of the available evidence takes into account the recent theoretical advances in this area.

The volume consists of nine substantive chapters separated into two parts. A main contribution of the first part is to use a blend of both theory and empirics to point out that the impact of trade liberalization on labor markets, including adjustment costs, depends in important ways on domestic labor market regulations and the nature of competition or market structure. Part I of the volume also presents a detailed discussion on the issue of labor standards, including whether trade access should be linked to a country's labor standards.

The second part of the volume moves on to a consideration of various related issues in three large and labor intensive countries, China, India and Indonesia. The approach taken in these studies is to focus on a specific issue of interest and examine this issue carefully for one country using available data. Thus the chapter on China examines the linkages between foreign direct investment and domestic labor standards; the Indonesia chapterassesses the relationship between trade and wage inequality between skilled and unskilled workers; and the chapter on India focuses more broadly on how trade liberalization has impacted employment in the manufacturing sector, paying special attention to the issue of labor market regulations.