Front Matter, Table of Contents, Preface

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This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research

Volume Title: Import Competition and Response

Volume Author/Editor: Jagdish N. Bhagwati, editor

Volume Publisher: University of Chicago Press

Volume ISBN: 0-226-04538-2

Volume URL: http://www.nber.org/books/bhag82-1

Publication Date: 1982

Chapter Title: Front matter, table of contents, preface

Chapter Author: Jagdish N. Bhagwati

Chapter URL: http://www.nber.org/chapters/c5998

Chapter pages in book: (p. -9 - 0) Import Competition and Response A Conference Report National Bureau of Economic Research Import Competition and Response

Edited by Jagdish N. Bhagwati

423 The University of Chicago Press CwW w Chicago and London JAGDISHN. BHAGWATIis the Arthur Lehman Professor of Economics and director of the International Economic Research Center at Columbia University. He is the editor of the Journal of International Economics.

The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London 0 1982 by The National Bureau of Economic Research All rights reserved. Published 1982 Printed in the United States of America 89 88 87 86 85 84 83 82 5 4 3 2 1

Library of Congress Cataloging in Publication Data Main entry under title:

Import competition and response.

(A conference report/National Bureau of Economic Research) Papers presented at the National Bureau of Economic Research Conference on Import Competition and Adjustment: Theory and Policy held in Cambridge, Mass., May 8-11, 1980. Bibliography: p. Includes indexes. 1. Trade adjustment assistance-Congresses. I. Bhagwati, Jagdish N. 11. National Bureau of Economic Research Conference on Import Competition and Adjustment: Theory and Policy (1980: Cambridge, Mass.) 111. Series: National Bureau of Economic Research conference report. HF1421.147 382.5 81-21831 ISBN 0-226-04538-2 AACW ISBN 0-226-04539-0 (pbk.) National Bureau of Economic Research Officers Eli Shapiro, chairman David G. Hartman, executive director Franklin A. Lindsay, vice-chairman Charles A. Walworth, treasurer Martin Feldstein, president Sam Parker, director of finance and administration

Directors at Large Moses Abramovitz Franklin A. Lindsay Richard N. Rosett George T. Conklin, Jr. Roy E. Moor Bert Seidman Morton Ehrlich Geoffrey H. Moore Eli Shapiro Martin Feldstein Michael H. Moskow Stephen Stamas Edward L. Ginzton James J. O’Leary Lazare Teper David L. Grove Peter G. Peterson Donald S. Wasserman Walter W. Heller Robert V. Roosa Marina v.N. Whitman

Directors by University Appointment Charles H. Berry, Princeton James L. Pierce, California, Berkeley Otto Eckstein, Harvard Nathan Rosenberg, Stanford Walter D. Fisher, Northwestern James Simler, Minnesota J. C. LaForce, California, Los Angeles James Tobin, Yale Paul McCracken, Michigan William S. Vickrey, Columbia Daniel McFadden, Massachusetts Institute Dudley Wallace, Duke of Technology Burton A. Weisbrod, Wisconsin Almarin Phillips, Pennsylvania Arnold Zellner, Chicago

Directors by Appointment of Other Organizations Carl F. Christ, American Economic Asso. Rudolph A. Oswald, American Federa. ciation tion of Labor and Congress of Robert C. Holland, Committee for Eco- Industrial Organizations nomic Development Joel Popkin, American Statistical Associa- Stephan F. Kaliski, Canadian Economics tion Association G. Edward Schuh, American Agricultural Albert G. Matamoros, National Associa- Economics Association tion of Business Economists James C. Van Home, American Finance Douglass C. North, Economic History Association Association Charles A. Walworth, American Institute of Certified Public Accountants

Directors Emeriti Arthur F. Bums Thomas D. Flynn Murray Shields Emilio G. Collado Gottfried Haberler Boris Shishkin Solomon Fabricant Albert J. Hettinger, Jr. Willard L. Thorp Frank Fetter George B. Roberts Theodore 0. Yntema

Since this volume is a record of conference proceedings, it has been exempted from the rules governing critical review of manuscripts by the Board of Directors of the National Bureau (resolution adopted 6 July 1948, as revised 21 November 1949 and 20 April 1968). Contents

Preface ix 1. Introduction 1 Jagdish N. Bhagwati

I. ADJUSTMENTPROCESSES AND POLICIES: THEORETICALISSUES

2. Import Competition and Macroeconomic Adjustment under Wage-Price Rigidity 11 Michael Bruno Comment: J. Peter Neary

3. Intersectoral Capital Mobility, Wage Stickiness, and the Case for Adjustment Assistance 39 J. Peter Neary Comment: Carlos Alfred0 Rodriguez Comment: Avinash Dixit

4. Government Policy and the Adjustment Process 73 Michael Mussa Comment: Alasdair Smith

5. Protection, Trade Adjustment Assistance, and Income Distribution 123 Peter A. Diamond Comment: John S. Chipman vii Contents

11. RESPONSESTO IMPORTCOMPETITION: LOBBYING ET AL.

6. Shifting Comparative Advantage, Protectionist Demands, and Policy Response 153 Jagdish N. Bhagwati Appendix. Product Creation and Trade Patterns: A Theoretical Note on the "Biological" Model of Trade in Similar Products Robert C. Feenstra

7. Trade in Differentiated Products and the Political Economy of Trade Liberalization 197 Paul Krugman Comment: Kelvin Lancaster Comment: Michael Mussa Comment: John S. Chipman

8. Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare 223 Ronald Findlay and Stanislaw Wellisz Comment: Richard A. Brecher Comment: Leslie Young

9. Tariff Seeking and the Efficient Tariff 245 Robert C. Feenstra and Jagdish N. Bhagwati Comment: Robert E. Baldwin

10. The Political Economy of Protectionism 263 Robert E. Baldwin Comment: Stephen P. Magee Comment: Stanislaw Wellisz

111. ADJUSTMENTPROCESSES, ASSISTANCEPOLICIES, AND POLITICALRESPONSE: SOME EMPIRICAL REALITIES

11. Adjustment in Process: A Lancashire Town 295 Ronald P. Dore Comment: J. David Richardson

12. Trade Adjustment Assistance under the United States Trade Act of 1974: An Analytical Examination and Worker Survey 321 J. David Richardson Comment: C. Michael Aho Comment: Martin Wolf viii Contents

13. European Community Protection against Manufactured Imports from Developing Countries: A Case Study in the Political Economy of Protection 369 Eric Verreydt and Jean Waelbroeck Comment: William R. Cline Comment: Gene M. Grossman

List of Contributors 401 Author Index 403 Subject Index 406 Preface

The present volume is the result of the National Bureau of Economic Research Conference on Import Competition and Adjustment: Theory and Policy, which was held in Cambridge, Massachusetts, 8-11 May 1980. Supported financially by the Ford Foundation, the conference was aimed at developing theoretical concepts and ideas concerning the topic of import competition, defined broadly to include different types of economic responses to the fact of import competition. Thus, international economic theorists of distinction were invited to model processes such as lobbying relative to import competition, for instance. The volume therefore addresses a number of theoretical issues that are fairly novel and which also bear on policy questions, in many cases fairly directly. For making the conference highly successful and a pleasant experience, Kirsten Foss of the NBER and Maureen Ryan of MIT deserve special thanks. Maureen Kay of the NBER provided cheerful and prompt help through the year that preceded the conference. Won Chun of Columbia helped ably with the finalization of the volume for the University of Chicago Press. Anne Spillane assisted cheerfully with the publication of the volume. Peter Ruof of the Ford Foundation was, as always, ex- tremely generous with his ideas and deserves special thanks. Finally, Robert Feenstra worked through all the papers and spotted numerous errors in spelling, algebra, and economics. His conscientious and acute reading of the papers has improved the quality of the volume immeasurably.

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