Computational Analysis of Global Trading Arrangements.

• Author: Kulkarni, Kishore G.

This is a collection of already published papers by Professors Deardorff and Stern in years between 1985 and 1989. The common thread among all these articles is the use of Michigan Model of World Production and Trade. After presenting the model in 1986, the authors had received several useful comments from other researchers on their work. The present book is an extension made after incorporating these comments. The book is divided into four parts. Part 1 has two chapters that deal with the modeling of global trading arrangements. While chapter 2 discusses the model, chapter 3 discusses the model's data requirements and parameters, solution procedure and reporting of results.

Part 2 consists of eight chapters that carry out the computational analysis of the effects of protection. Chapter 4 answers the question of whether one should consider, home country's tariffs or foreign country's tariffs to analyze the effects of protection. Chapter 4 also considers the question of how important is the non-tariff barrier for trade. By using the structure of input-output table, chapter 5 measures the sensitivity of protection. Chapter 6 evaluates the benefit (or cost) of own country protection for developing country as against own country protection in developed country group. Chapter 7 uses empirical data of the U.S. and Japan to test the effects of protection on the factor contents of their trade. Chapter 8 studies the...