Table Of ContentThec hapteirnts h icso llecutsieoin nte rdiscilpinayr persepcteisvt oi nvestigate
issuine si nternatainodcn oamlp aratliavwpe,r imareimlpyl oyitnhge oretoirc al
empirieccaoln omiTchse.yd emonstrtahtaetth e economica naylsiso fl aw has
muchto contribtuott ehe s tudoyf i nternaitonalm attedressp,ie t thef act that
mainstrienatme rnatlieognsaacllh olaanrdse conomihsatvshe a dr elatilvietltyl e
interacTthieo nc.h apttaekrceso mparatoirev mep iriacpaplr oacthoee sx plore
themeisni nternattiroandtaerl,a daen dt hee nvironmleanwat n,d d evelopment,
thpeo liteiccoanlo moyfp rivatizaantdei xocnh anrgaetp eo liceiceosn,o mtihce
orieofsi nternatiinosntailt udteisoingianml,m igraptoiloincc oym,p arative bank
ruptciyn,t ernatainotniatlr aunsdte ,x traterrjiutroirsidailc DteiaonnR .o nald
Casso fB ostoUnn iversLiatw yS chooclo nritubtesa n introducotni tohne
broadienrt eracbteitowne eenc onomiacnsdi nternatliaowna anldc omments
specificoanls leyv ercahla pteOrrsi.g ivnearls ioofn s tehses awyesr ep resented
ata conference spboyDn usqoureesndea ndG eorgMea sonU niversiintt ihees
sprionfg1 99a5n,ds omec haptearres f ollowbeycd o mmenftrso mc onference
participants.
Economdiicm ensions
ini nternatliaown al
Economidci mensions
ini nternatliaown al
Comparaatnidev mep irpiecraslp ectives
Editbeyd
JAGDEEP S.B HANDARI
ALAN 0. SYKES
la CAMBRIDGE
�
UNIVERSITPYR ESS
PUBLIStBlEYDT HEP RESSSY NDICAOTFET HEU NIVERSOrrFYC AMBRIDGE
The PBiutiltd inTgr,u mpionngS ttreCeatm,b ridCgBe2,l RPU,n iteKdi ngdom
CAMBRIDUGEN IVERSIPTREYS S
The Edinburgh CBaumiblrdiidCngBge2, 2 RU,U niteKdi ngdom
40W est2 0th StNreeweY to,r kN,Y 10011-42U1S1A,
10S tamfoRroda dO,a kleiMgehl,b our3n1e6 6A,u stralia
© JagdeSe.pB handaarnidA lan0 .S yke1s9 97
Thibso oki si nc opyriSguhbtj.e tcost t atuteoxrcye ption
andt ot hep rovisoifor nesl evcaonltl ecltiicveen saigrnege ments,
nor eporductioofan n yp armta yt akpel acwei thout
thew rittpeenr missoifCo anm bridUgnei versPiretsys .
Firpsut blis1h997e d
Printientd h eU niteSdt atoefsA merica
TypesientTi mesR oman
libraorfyC ongreCsast alnogg-iin-PubliDcaatat ion
Economdiicm ennssiio ni nternatliaow:n c aomlp aratainvdee m pirical
perspectIJi avgedse Se.pB handari,0 .AS lyakne s [editors].
p. cm.
Paperpsr esenatte dc ao nfereinntc heeS prionfg1 99s5p,o nsobrye d
DuquesUnnei versaintdGy e orgMea sonU niversity.
£SBN0 -521-57(0h1b2.--)3I SBN 0-521-5(7p8b9k8.-)1
1.F oreitgrna dreeg ulat-iCoonn gress2e.sLa .w ande conomics
Congress3e.sC. o mpartliavweC ongress4es.C.o mmercpioall icy
CongressIe.sB .h andaJraig,d eSe.p II. AS.0y .ke s,
K3943.A5159 95
341.7-'d5c42 1 96-39893
Ac atalroegc ofrodr t hibso oki sa vailafbrloem
theBr itilsihb rary
ISBN0 5215 70132 h ardback
ISBN0 5215 78918p aperback
Contents
Preface pagveii
IntroducEtcioonno:m iacnsdi nternatliaown al 1
RONALDA .C ASS
1 Thee conomiocsft hem ostfa vorenda ticolna use 43
WARRENF. SCHWARTaZn dA LANo .S YKES
Commentosn C hapt1e r 80
ALANV .D EARDORFF
2 Thee conomiocf"s i njuirnya "n tidumpainndg
countervadiulticyna gs es 83
ALAN0 .S YKES
3 Thee conomiocf"s i njuirnya "n tidumpainndg
countervadiulticyna gs eAs r:e pltyoP rofesSsyokre s 126
RONALDA .C ASSa ndM ICHAEsL.K NOLL
4 Innovatiinos nupspo rto ft heu nitairnyj uryi ntU e.sSt.
unfatirard e cases 166
RICHARDD. B OLTUCK
5 Thef reter ade-tfraaiddree batTrea:d el,a boarn,d
thee nvironment 186
ROBERHTO WSEa nd MICHAEJL.T REBILCOCK
Commentosn C hapt5e r 235
PHILIMP.N ICHOLS
6 Internatcioonnflailac ntdc oordinaitni on
environmepnotlailc ies 248
ALANV .D EARDORFF
7 Markemto dernizaotfli aonwE :c onomdiecv elopment
throudgehc entrallaiwz ed 275
ROBERDT. C OOTER
Commentosn C hapt7e r 317
WILLIAEM.K OVACIC
v
Contents
8 Towarad p osittihveeo oryfp rivatization:
Lessons Sforvoime t-etcyopneo mies 324
PAULB .S TEPHAINl l
Commentosn C hapt8er 367
ROBERDT.C OOTER
9 News torioense xchanrgaet peo liciinet sr ansition 370
ENRICCOO LOMBAlaTnOdJ ONATHAMNA CEY
10I sd eposiints urainnceev ita-bllees?s ofnrso mA rgentina3 92
GEOFFREMYI LLER
P.
11T he marfkoermt i grants 405
H.B UCKLEY
F.
11 446
Commentosn C hapter
WENDYZ IMMERMAN
12Th e interpolfal yi quidaatnidro eno rganiziantt ihoen
bankrupstycsyt eomfsC anadaan d tUhnei teSdt ates:
Ther oloef s creegnast,e keepaenrdgs u,i llotines 449
GEORGE
G.T RIANTIS
13I nternatpioolniatlei ccoanlo mayp proacthoe s
internatiinosntailt utions 477
DUNCASNN IDAL
14T het radeef fecotfs domeasnttiict ernufsotr cement 513
DIANPE.W OOD
15Th e HartfoIrnds uraCnocmep ancya se: Antiint rtuhset
globeaclo nom-yw elfaerfef ecatnsds overeignty 530
ALANC .S WAN
16R ecognitoiffo onr eijgund gmenatsas t rade ilsaswu e:
Thee conomiocfps r ivaitnet ernatliaown al 592
RONALAD. B RAND
17E xternalaintdei xetsr aterritThoer liaawla intdy :
economiocfps r escrijputriivsed iction 642
JOELP .T RACHTMAN
Index 684
vi
Preface
The chapteirnts h ibso oka re trhees uolfat p rojedcets igneedx ptloo re
opportunfiotrii enst erdiscirpelsienaarircnyhi nternatainodnc aolm
paratilvaewp, a rticurleasrelayr ecmhp loyitnhge oretoirce amlp irical
economiTchsep. r ojercetfl ecotusrc onviction thata neacloyonsfoi msi c
lawh asm ucht oc ontribtuott hees t udoyfi nternatmiaotntaeblru st, that
tod atmea instrienatme rnatlieognsaacllh olaarnsds cholairnst erested
ine conommiect hodhsa veh adl amentalbiltyit nltee raction.
Thec hapteardsd reas rsa ngoef i ssuiensc, ludiinntge rnattiroandael,
tradaen dt hee nvironmleanwat n,d d evelopmtehnept o,l iteiccoanlo my
ofp rivatizaantdi oenx chraantgpeeo liceiceosn,o mtihce oroifei sn ter
nationianls titutdieosniagilnm ,m igratpioolni ccyo,m paratbiavnek
ruptciyn,t ernatainotniatlr aunsdte ,x traterrjiutroirsidailc Dteiaonn .
RonalCda sso fB ostoUnn iversLaiwt yS choohla sg eneroucsolny
tributeodv earnv ideiws cusstihnebg r oadeirn teracbteitowne eenc o
nomicasn di nternatliaown.a laH les doi scussedse tianin lu mab eorf
thech aptertsh ivison l ume.
Eacho f tchhea ptewrassp resentaetad c onfereinnct eh es prionfg
1995s,po nsorbeyDd u quesUnnei versaintdG ye orgMea sonU niversity.
Accordinsgolmye, tohfec haptearrsef ollowbeydc ommentasn dc riti
cismfsr omc onferepnacret icipants.
Thispr ojewcotu ldn ot habveee np ossibwliet hotuhte supopfo rt
DuquesnUen iversaintdGy e orgMea sonU niversaintdty h eirres pec
tivlea ws choodle ansN,i cholP.a Csa faradnid H enryG. Manne. Lori
GodshaolflD uquesnUen ivershiatspy r ovidteidr elseescsr etaarnida l
logistical atshsriosutgahtnohcueet proocfep srse partihnepg a perasn d
thefi namla nuscript.
JAGDE$E.BPH ANDARI
ALAN0 .S YKES
vii
IntroducEtcioonno:m iacnsd
internatliaown al
RONALD A. CASS*
I.I ntroduCcotmiboinn:a atnicdoa nlsc ulations
Inb ookdse signfeodrb eginnailngge bsrtau den-tasn dn, ot,h iissn ot
ana lgebtreax wti tthh ew roncgo ve-rq uestioofnt sh ef ollowsionrgt
commonlayr ep osedI:fJ ohcna n motwh el awinn f orty-mfiivneu taensd
Mary cmaonw the liawntn h irmtiyn utheosw,l ong wiit llt akea nJdo hn
Maryt om ow thel awnt ogethMeyr ?fi rsitn stiwnhcetnI e ncountered
suchp roblewmass n otto fi guroeu tw hatf ractoifot nh el awn each
mowedi na minutseot haItc ouladd dt heciorn tribuatnidot nhsew no rk
outt hel engotfht imnee edefdo r ttheea mt oc ompleittweso rk. Instead,
Iw asi nclitnoea ds k whethera nJdMo ahrny e achha d laa wnmower,
whether gtohtae lyo nwge lolr t ended to compoenteae n owtihtaehnr d,,
ift hewye rec ompetitiwvhee,t heirtw asa good-natucroemdp etition
(whereea cthr iteodb eb etttehra tnh e otohrea rn )a stiveerrs i(ownh ere
thewyo uld sabootnaeag neo theerf'fso rts).
Althoutghha itn stiwnacstn ot alwaapypsl audbeydm y teachiert,
poseuss efquule stiTohnse.ra er et imewsh ent wop eoplpeo ssecsosm
plementsakriyla lnsdc anb ei nducteodu set hemt og reater advantage
than mear es umo ft heiirn dividautatla inmentss uwgoguelAsdnt d.
theraer ien stanicnwe hsi cihn dividauraebl est tleerfo tnt heoiwrn w,h en
either wdoobu eltdt tehra tnh et woi nc ombinatIitio shn e.l pftuokl n ow
whicrhe sual gti vecno mbinatwiiolpnlr oduce.
Thes amei st rufeo rn ewc ombinatiinoo ntsh er arTheen aasp.p lica
tioonfe conomitcsoi nternatliaown wa-hli cihts h seu bjeocftt h ibso ok
-poses stahmees ortosfq uestiIoa nssk eadb ouJto hna ndM ary( except
fort heq uestiaobno uhto wm anyl awnmowetrhseo yw nedD)o. t hee co
nomimce thodolodgeipelso yheedr mea kea nalyosfii sn ternatliaown al
clearDeor ?t heyyi elvda luabilnes ighOtrsi ?st hermee reliyn creased
frictaisao unt hoernsd eavtoora pplmye thodolodgeiseisg nfeodro ther
ends?
* Deana ndM elviMlaldies Boing elPorwo feosfs oLarBw o,st oUnn iversiry oSfc hool
LawI.a mg ratefJuaclBk e teorm anRno,b erBto nDea, viDda nKae,i Htyhl tMoinc,h ael
KnolDl,a viLydo ns.O liveMro reteWaiul,l W.i aPma rGkl,e nR obinson, andK enneth
Shepfsolhree lpful caonmdm JeotnhotnV isa rM,a rleAnled ermaanndJ,o Fne rnfaolrd
cheerafunldc a pabrlee$ earacshs istance.
1
ECONOMIDCI MENSIOINNSI NTERNATIOLNAAWL
ILN ewk iodn t hbel ocIkn:t ernational
law-and-ecsocnhoomliacsr ship
Att heo utseitt, niost ewortthhyat th ivso lumies t he firsbtr itnog
togethae lra rge colloefcc htaipotne urtsi liezcionngo mainca lystios
assetshseb asifso ra greemeinnti sn ternatiloanwta,hl ei nterpretoaft ion
internataigorneaelm enatnsd, tehfef ecotfis n ternatJiaowIn.tai lsn ote
worthiynp arbte cauistseh oulbdes urpritsoim nogs tr eadeArfst.e arl l,
form anyy ear-si ndeebda,c kt o tihnec eptoifom no deme conomi-cs
international rebleaetnsi toanpssl uehb ajvecfeto rse conomainca lysis.
AdamS mithw'rsi tionngi sn ternattiroandaaenl d n ationweaall tahn d
DavidRi cardeox'pso sitoifoc no mparataidvvea ntaignie n ternational
economriecl atiaornes obveixoaumsp leTsh.e1iw ro rkf ormetdh eb ack
2
grounfdo rw ritibnyg so thfearm ouesc onomisAtnsd.i nr ecenyte ars,
economjiocu rnaalnsdt. exthsa veb eenh omes at woe altohfn otions
aboutth ei nterpolfa yi nternational ecaonndon maitci oatncratalid vei ty
3
andm onetaproyl icy.
By anlda rgheo,w evetrh,e swer itihnagvs eb eena boutth e welfare
effecotfps a rticpurlaacrt i-coefts a riofrfo st herre stricotnii omnpso rts,
fore xamp-leb utn ots om ucha boutth eL aEwc.o nomihsatvsed ebated
thec onditiuonndse wrh ictha ricfafnsi mprovnea tiowneallf arTeh.e4y
1 Adam SmitWhe,a lTothfNh ea ti(oEndsw Ciann naend,. , NewM oYdoerrLkni: b rary,
193o7r;i ginpaulbllyi s1h7e7d6D )a;v iRdi carOdnot ,h Per inciopfP loelsi tEiccoanlo my
andT axat(iLoonn dJoonh:Mn u rra3dye ,d .1,8 21).
2 E.gA.,l frMeadr shTahlelP u,r Teh eoorfyF oreiTrgand Teh;eP urTeh eoorfyD omes
tiVca lu(eLso ndLoonn:d oSnc hoooflE conomi1c9s3r,0e ;p rin1t8 7po9rf i vpautbel ica
tionA)l;f rMeadr shaPlrli,n ciopfEl ceoson mic3s6 3-4(1L2o ndMoanc:m il8ltahen d,. ,
1920B)e;r tOihll iInn,t erreagnidIo nntaelrn atTiroand(aeC la mbriHdagrev:aU rndi versity
Pres1s9,3 3G)ot;t frvioend HabeTrhelT ehre,oo rfyl mernatTiroandwaeil tI htA sp plica
tionC otmom ercPioalli( cLyo ndWomn.:H odg1e,9 3J6a)co;bV ineSrt,u diine sTt hheeo ry
ofl mernatiTornaad(leN ewYo rkH:a rp&e rB ros1.9,3 7P)a;uA l.S amuel"sTohnGe,a ins
froImn ternaTtriaodOnena cleA g ain7,2E" c onJ..8 20 (1r9e6p2r)i nitnIe ndt ernational
TrdaeS:e lected 1R3e(1aJ daigndNgi.Bss h ha wgati,Ceadm.b,r idMIgTeP :r es2sde, d 1.9,8 7;
JagdNis.Bh h agw&a tT.iN .S rinivLaescatnu,or nIes n ternatTiroand(aeCl a mbriMdIgTe :
Pres1s9,8 3).
3 E.g.,AviDniaxsihVt i c&tN oorr maTnh,e oorfyI nternatTiroand(aeC la mbridge: Cam
bridUgnei verPsriets1ys9 .8 I0m)p;e rfCeocmtp etiatnidIo nnt ernatTiroand(aeGl e nMe.
Grossmeadn.,C, a mbridMgIeT:P res1s9,9 2E)l;h anHaenl pma&n P auRl. K rugman,
MarkSettr ucatnudFr oer eiTgrdane I:n creaRseitnugrnI s,mp erfCeocmtp etiatnidto hne,
InternatEicoonnaol(m Cya mbriMdIgTeP :r e1s9s8,5 P)a;uR l.K rugmaRne,t hinIknitnegr
natioTnraald( eC ambriMdIgTeP :r es1s990,) S;t ratTergaidPceo liacnydt hNee wI nterna
tionEaclo nom(iPcasRu .lK rugmaend,.C ,a mbriMdgIeTP: r es1s9,8 6).
• E.gJ.a,m esB rAa.n d&e Bra rbaJr.Sa p enc"eIrn,t ernaRt&iDo Rniavla alnrdyI ndus
triSatltr eagy5,0"R evE.c onS.t u7d0.7( 198J3a)m;eAs . B rand&e Bra rbaJr.Sa p encer,
"TarPirfoft ecatnidIo mnp erfCoemcptie ttioinnM, o"n opsotliCico mpetiatnidlo mne ma
tionTarald 1e9 4-2(0H6e nrKyike rzkoewds.Ok,xi f,o rCdl:a renPdroens1 s,9 84P)a;uR l.
Krugma"nI,m poPrrto tecAtsiE oxnp oPrrto motioMno,n"o pionl Coimspteitci tainodn
InternatTiroandsaeul,p arta1 80-93.
2
