International economics : theory and policy

Pearson International Edition

8th

E d itio n

International

Economics

Theory 8c Policy

Krugman • Obstfeld Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn1

rade Flows with the United States

Canada

United States

M exico

Other Latin

America

Japan

Australia and

New Zealand

Key

= Exports

= Imports

= Less than $20 billion per year

= $20-50 billion

= $50-100 billion

= $100-150 billion

= $150-200 billion

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn2

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn3

International Economics

THEDRY (Sc P dlicy

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn4

The Addison-W esley Series in Econom ics

Abel/Bernanke/Croushore

Macroeconomics *

Bade/Parkin

Foundations o f Economics *

Bierman/Fernandez

Game Theory with Economic

Applications

Binger/Hoffman

Microeconomics w ith Calculus

Boyer

Principles o f Transportation

Economics

Branson

Macroeconomic Theory and Policy

Bruce

Public Finance and the

American Economy

Byrns/Stone

Economics

Carlton/Perloff

Modern Industrial Organization

C avcs/Frankel/Jones

World Trade and Payments:

An Introduction

Chapman

Environmental Economics:

Theory\ Application, and Policy

Cooter/l'len

Law & Economics

Downs

An Economic Theory o f

Democracy

Fhrenberg/Smith

Modern Labor Economics

Ekelund/Ressler/Tollison

Economics*

Fusfeld

The Age o f the Economist

Gerber

International Economics

Ghiara

Learning Economics

Gordon

Macroeconomics

Gregory

Essentials o f Economics

Gregory/Stuart

Russian and Soviet Economic

Performance and Structure

H art» ick/Ole\> iler

The Economics o f Natural

Resource Use

Hoffman/A\erett

Women and the Economy:

Family. Work, and Pay

H o lt

Markets, Games, and Strategic

Behavior

Hubbard

Money, the Financial System,

and the Economy

Hughes/Cain

American Economic History

Husted/Melvin

International Economics

Jehle/Reny

Advanced Microeconomic

Theory

Johnson-I.ans

A Health Economics Primer

Klein

Mathematical Methods

fo r Economics

krugman/Obstfeld

International Economics*

Laidler

The Demand fo r Money

Leeds/von Allmen

The Economics o f Sports

Leeds/von Allmen/Schiming

Economics*

Lipsey/Ragan/Storer

Economics*

Melvin

International Money and Finance

Miller

Economics Today*

Miller

Understanding Modern

Economics

Miller/Benjamin

The Economics o f Macro

Issues

Miller/Benjamin/North

The Economics o f Public Issues

Mills/Hamilton

Urban Economics

Mishkin

The Economics o f Money,

Banking, and Financial

Markets *

Mishkin

The Economics o f Money,

Banking, and Financial Markets.

Alternate Edition*

M urra\

Econometrics: A Modern

Introduction

Parkin

Economics *

Perloff

Microeconomics *

Perloff

Microeconomics: Theory and

Application with Calculus

Perman/Common/McGilvray/Ma

Natural Resources and

Environmental Economics

Phelps

Health Economics

Riddell/Shackelford/Stamos/

Schneider

Economics: A Tool fo r Critically

Understanding Society

Ritter/Silber/Udell

Principles o f Money.

Banking, and Financial

Markets

Rohlf

Introduction to Economic

Reasoning

Ruffin/Gregory

Principles o f Economics

Sargent

Rational Expectations

and Inflation

Scherer

Industry Structure. Strategy,

and Public Policy

Sherman

Market Regulation

Stock/Watson

Introduction to Econometrics

Stock/Watson

Introduction to Econometrics.

B rief Edition

Studenmund

Using Econometrics

Tietenberg/Lewis

Environmental and Natural

Resource Economics

Tietenberg

Environmental Economics

and Policy

Todaro/Smith

Economic Development

Waldman

Microeconomics

Waldman/Jensen

Industrial Organization:

Theory and Practice

Weil

Economic Grow th

Williamson

Macroeconom ics

'denotes titles. Log onto www.myeconlab.com to learn more

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn5

International Economics

T heory & P olicy

EIGHTH EDITION

Paul R. Krugman

Princeton University

Maurice Obstfeld

University of California, Berkeley

Boston San Francisco New York

London Toronto Sydney Tokyo Singapore M adrid

Mexico City M unich Paris Cape Town Hong Kong M ontreal

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn6

For Robin

— P . K .

For M y Family

— M . O .

Editor in Chief: Denise Clinton

Sponsoring Editor: Noel Kamm

Assistant Editor: Courtney E. Schinke

M anaging Editor: Nancy Fenton

Senior Production Supervisor: M eredith Gertz

Cover Designer: Joyce Wells

Photo Researcher: Beth Anderson

Rights and Perm issions Advisor: Dana W eightman

Supplem ents Coordinator: H eather M cNally

D irector o f M edia: M ichelle Neil

Senior M edia Producer: M elissa Honig

C ontent Lead, M yEconLab: D ouglas Ruby

Senior M arketing M anager: R oxanne M cCarley

M arketing Assistant: Ashlee C levenger

Senior Prepress Supervisor: C aroline Fell

Senior M anufacturing Buyer: C arol M elville

Production C oordination, C om position, and Illustrations: Elm St. Publishing Services

Photo C redits appear on page 687, w hich constitutes a continuation o f the copyright page.

M any of the designations used by m anufacturers and sellers to distinguish their products are claim ed as

tradem arks. W here those designations appear in this book, and Addison-W esley was aware o f a trademark

claim , the designations have been printed in initial caps or all caps.

Copyright © 2009 by Paul R. K rugm an and M aurice O bstfeld. All rights reserved. N o part o f this publication

may be reproduced, stored in a retrieval system, or transm itted, in any form or by any m eans, electronic,

m echanical, photocopying, recording, or otherw ise. without the prior w ritten perm ission of the publisher.

Printed in the United States o f A m erica. For inform ation on obtaining perm ission for use o f m aterial in this

work, please subm it a written request to Pearson Education. Inc.. R ights and C ontracts Departm ent. 501

Boylston Street. Suite 900. Boston. M A 02116. fax your request to 617-671-3447. or e-m ail at

http://w w w .pearsoned.com /legal/perm issions.htm .

IS B N -13: 978-0-321-55398-0

IS B N -10: 0-321-55398-5

It you purchased this book w ithin the United States or C anada you should be aware that it has been w rong￾fully im ported w ithout the approval of the Publisher or the Author.

2 3 4 5 6 7 8 9 10— C R K — 12 11 10 09 08

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn7

Brief Contents

Contents vii

Preface xx

1 Introduction 1

P a rti International Trade Theory 11

2 World Trade: An Overview 12

3 Labor Productivity and Comparative Advantage:

The Ricardian Model 27

4 Resources, Comparative Advantage, and Income Distribution 54

5 The Standard Trade Model 88

6 Economies of Scale, Imperfect Competition, and International

Trade 114

7 International Factor Movements 153

Part 2 International Trade Policy 181

8 The Instruments of Trade Policy 182

9 The Political Economy of Trade Policy 2 1 2

10 Trade Policy in Developing Countries 250

1 1 Controversies in Trade Policy 266

Part 3 Exchange Rates and Open-Economy Macroeconomics 287

12 National Income Accounting and the Balance of Payments 288

13 Exchange Rates and the Foreign Exchange Market:

An Asset Approach 31 7

14 Money. Interest Rates, and Exchange Rates 351

15 Price Levels and the Exchange Rate in the Long Run 382

16 Output and the Exchange Rate in the Short Run 420

17 Fixed Exchange Rates and Foreign Exchange Intervention 460

Part 4 International Macroeconomic Policy 501

18 The International Monetary System, 1870-1973 502

19 Macroeconomic Policy and Coordination Under Floating

Exchange Rates 532

20 Optimum Currency Areas and the European Experience 565

21 The Global Capital Market: Performance and Policy Problems 594

22 Developing Countries: Growth, Crisis, and Reform 621

V

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn8

vi Brief Contents

Mathematical Postscripts 665

Postscript to Chapter 4: The Factor Proportions M o d el...................................................................... 666

Postscript to Chapter 5: The Trading World Economy ...................................................................... 670

Postscript to Chapter 6: The Monopolistic Competition Model .......................................................678

Postscript to Chapter 21 : Risk Aversion and International Portfolio Diversification ....................680

Credits 687

Index 689

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn9

EM In tr o d u c tio n 1

W hat Is International Economics About? ............................................................................................. 3

The Gains from Trade ..................................................................................................................................4

The Pattern of Trade ....................................................................................................................................5

How Much Trade? ........................................................................................................................................ 5

Balance of Payments ....................................................................................................................................6

Exchange Rate Determination .....................................................................................................................6

International Policy Coordination ..............................................................................................................7

The International Capital Market ................................................................................................................ 7

International Economics: Trade and Money .........................................................................................8

Preface .................................................................................................................................................................... xx

Pa rt! International Trade Theory 11

Q W o rld T ra d e : A n O v e rv ie w 12

W ho T rades w ith W hom ? .........................................................................................................................13

Size Matters: The Gravity Model ............................................................................................................13

The Logic of the Gravity Model .............................................................................................................. 15

Using the Gravity Model: Looking for Anomalies ............................................................................... 16

Impediments to Trade: Distance, Barriers, and Borders .......................................................................17

The C hanging P attern of W orld T r a d e .................................................................................................. 19

Has the World Gotten Smaller? ................................................................................................................ 19

What Do We Trade? .................................................................................................................................... 20

Service Outsourcing .................................................................................................................................... 23

Do Old Rules Still Apply? ......................................................................................................................... 23

Sum m ary .......................................................................................................................................................... 24

□ L a b o r P ro d u c tiv ity a n d C o m p a ra tiv e A d v a n ta g e : T h e R ic a rd ia n M o d e l 27

The C oncept of C om parative A dvantage ..............................................................................................28

A O ne-F actor Econom y .............................................................................................................................. 29

Production Possibilities .............................................................................................................................. 30

Relative Prices and Supply ........................................................................................................................31

T rade in a O ne-Factor W orld ...................................................................................................................31

Determining the Relative Price After Trade ...........................................................................................32

b o x : C om parative A dvantage in P ractice: The Case of Babe R uth .......................................... 35

The Gains from Trade .................................................................................................................................36

A Numerical Example .................................................................................................................................37

Relative Wages ..............................................................................................................................................38

b o x : T he Losses from N ontrade ...............................................................................................................39

M isconceptions About C om parative A dvantage ................................................................................40

Productivity and Competitiveness .............................................................................................................40

The Pauper Labor Argument ......................................................................................................................41

Exploitation ...................................................................................................................................................41

b o x : Do W ages Reflect Productivity? ..................................................................................................... 42

C om parative A dvantage with M any Goods ..........................................................................................42

Số hóa bởi Trung tâm Học liệu – ĐH TN http://www.lrc-tnu.edu.vn10