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The Pure Theory of International Trade: A Survey

  • Jagdish Bhagwati

Abstract

This chapter surveys that branch of international trade theory which, following Marshall, is generally described as “pure.” This epithet separates it from “monetary” theory. It is not to be taken to imply exceptional esotericism and abstraction from the problems of the real world. Indeed, I propose to give prominence to that part of the growing, new literature in pure theory which attempts explicitly to bring the theory on to the ground—through empirical verification of testable propositions, through measurement of the gains and losses from changes in trade policy and through the formulation of analytical and operational models to assist the developmental planning that is becoming a key characteristic of the developing nations.

Keywords

International Trade Trade Policy Tariff Rate Trade Theory Price Ratio 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© The Royal Economic Society and the American Economic Association 1965

Authors and Affiliations

  • Jagdish Bhagwati

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