The Gains from Trade and the Gains from Aid

When does a country benefit from free trade?This is one of the oldest questions in economics. Posed by Adam Smith in response to the English Mercantilists, the question has obsessed economists for more than 200 years. The Gains from Trade and the Gains from Aid produces some satisfying general answers.The book is divided into five parts:

• trade under perfect competition;

• restricted trade under perfect competition;

• trade under imperfect competition and other distortions;

• compensation: lumpsum, non-lumpsum or neither?

• international aid

The volume can be viewed as a record of the progress made by Murray Kemp and his co-workers in addressing aspects of normative trade theory over the past 35 years. As such, it will be an invaluable guide for all those interested in the social consequences of international trade and aid.