Skip to main content
SpringerLink
Log in
Book cover

The New Palgrave Dictionary of Economics pp 13730–13735Cite as

Palgrave Macmillan

Tradable and Non-tradable Commodities

  • Reference work entry
  • First Online:

  • 18 Accesses

Abstract

The distinction between internationally tradable and non-tradable commodities lies at the heart of the reason for the development of the theory of international trade as an area of economics distinct from the general theory of value. The existence of nontradable commodities as well as tradable commodities implies that some markets are domestic while others are international. Connections between the prices of these two sets of commodities have been the subject of the famous factor-price equalization and Stopler–Samueslon theorems. Non-tradable goods play a prominent role in the analysis of many problems, such as tariff reform, exchange rates and international transfers.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   6,499.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   8,499.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Bibliography

  • Anderson, J.E., G.I. Bannister, and J.P. Neary. 1995. Domestic distortions and international trade. International Economic Review 36: 139–157.

    Article  Google Scholar 

  • Backus, D.K., and G.W. Smith. 1993. Consumption and real exchange rates in dynamic economies with non–traded goods. Journal of International Economics 35: 297–316.

    Article  Google Scholar 

  • Baxter, M., U.J. Jermann, and R.G. King. 1998. Nontraded goods, nontraded factors, and international non-diversification. Journal of International Economics 44: 211–229.

    Article  Google Scholar 

  • Blackorby, C., W. Schworm, and A. Venables. 1993. Necessary and sufficient conditions for factor price equalization. Review of Economic Studies 60: 413–434.

    Article  Google Scholar 

  • Chakrabarti, A. 2006. Factor price equalization beyond a ‘cubic’ world. Economic Theory 27: 483–491.

    Article  Google Scholar 

  • Corden, W.M., and J.P. Neary. 1982. Booming sector and deindustrialization in a small open economy. Economic Journal 92: 825–848.

    Article  Google Scholar 

  • Davis, D.R., and D.E. Weinstein. 2001. An account of global factor trade. American Economic Review 91: 1423–1453.

    Article  Google Scholar 

  • Deardorff, A.V., and P.N. Courant. 1990. On the likelihood of factor price equalization with nontraded goods. International Economic Review 31: 589–596.

    Article  Google Scholar 

  • Diewert, W.E., A.H. Turunen-Red, and A.D. Woodland. 1989. Productivity-and Pareto-improving changes in taxes and tariffs. Review of Economic Studies 56: 199–215.

    Article  Google Scholar 

  • Diewert, W.E., A.H. Turunen-Red, and A.D. Woodland. 1991. Tariff reform in a small open multi-household economy with domestic distortions and nontraded goods. International Economic Review 32: 937–957.

    Article  Google Scholar 

  • Dinwiddy, C., and F. Teal. 1987. Shadow prices for non-traded goods in a tax-distorted economy: Formulas and values. Journal of Public Economics 33: 207–221.

    Article  Google Scholar 

  • Dixit, A.K., and V. Norman. 1980. Theory of international trade. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Dornbusch, R. 1973. Devaluation, money, and nontraded goods. American Economic Review 63: 871–880.

    Google Scholar 

  • Dornbusch, R. 1974. Tariffs and nontraded goods. Journal of International Economics 4: 177–185.

    Article  Google Scholar 

  • Ethier, W. 1972. Nontraded goods and the Heckscher–Ohlin model. International Economic Review 13: 132–147.

    Article  Google Scholar 

  • Fukushima, T. 1979. Tariff structure, non-traded goods and theory of piecemeal policy recommendations. International Economic Review 20: 427–435.

    Article  Google Scholar 

  • Haberler, G. 1936. The theory of international trade with its applications to commercial policy. Trans. from the 1933 German edition by A. Stonier and F. Benham. London: William Hodge.

    Google Scholar 

  • Hadley, G., and M.C. Kemp. 1966. Equilibrium and efficiency in international trade. Metroeconomica 18 (2): 125–141.

    Article  Google Scholar 

  • Hatta, T. 1977. A recommendation for a better tariff structure. Econometrica 45: 1859–1869.

    Article  Google Scholar 

  • Jones, R.W. 1974. Trade with non-traded goods: The anatomy of inter-connected markets. Economica 41: 121–138.

    Article  Google Scholar 

  • Jones, R.W. 2006. Protection and real wages: The history of an idea. The Japanese Economic Review 57: 457–466.

    Article  Google Scholar 

  • Komiya, R. 1967. Non-traded goods and the pure theory of international trade. International Economic Review 8 (2): 132–152.

    Article  Google Scholar 

  • Mainwaring, L. 1978. Interest rate equalization theorem with nontraded goods. Journal of International Economics 8: 11–19.

    Article  Google Scholar 

  • Marion, N.P. 1984. Nontraded goods, oil price increases and the current account. Journal of International Economics 16: 29–44.

    Article  Google Scholar 

  • McDougall, I.A. 1970. Non-traded commodities and the pure theory of international trade. In Studies in international economics, ed. I.A. McDougall and R.H. Snape. Amsterdam: North-Holland.

    Google Scholar 

  • McKenzie, L.W. 1955. Equality of factor prices in world trade. Econometrica 23: 239–257.

    Article  Google Scholar 

  • Melitz, M.J. 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71: 1695–1725.

    Article  Google Scholar 

  • Mosak, J.L. 1944. General equilibrium theory in international trade. Bloomington: Principia Press.

    Google Scholar 

  • Murphy, R.G. 1986. Productivity shocks, non-traded goods and optimal capital accumulation. European Economic Review 30: 1081–1095.

    Article  Google Scholar 

  • Neary, J.P. 1980. Nontraded goods and the balance of trade in a neo-Keynesian temporary equilibrium. Quarterly Journal of Economics 95: 403–429.

    Article  Google Scholar 

  • Ohlin, B. 1933. Interregional and international trade. Cambridge, MA: Harvard University Press. Reprinted1952.

    Google Scholar 

  • Samuelson, P.A. 1953. Prices of factors and goods in general equilibrium. Review of Economic Studies 21: 1–20.

    Article  Google Scholar 

  • Schweinberger, A.G. 2002. Foreign aid, tariffs and nontraded private or public goods. Journal of Development Economics 69: 255–275.

    Article  Google Scholar 

  • Stolper, W., and P.A. Samuelson. 1941. Protection and real wages. Review of Economic Studies 9: 58–73.

    Article  Google Scholar 

  • Taussig, F.W. 1927. International trade, 1966. New York: Kelley.

    Google Scholar 

  • Tesar, L.L. 1993. International risk-sharing and non-traded goods. Journal of International Economics 35: 69–89.

    Article  Google Scholar 

  • Warr, P.G. 1982. Shadow pricing rules for non–traded commodities. Oxford Economic Papers 34: 305–325.

    Article  Google Scholar 

  • Woodland, A.D. 1968. Transportation in international trade. Metroeconomica 20 (2): 130–135.

    Article  Google Scholar 

  • Woodland, A.D. 1982. International trade and resource allocation. Amsterdam: North-Holland.

    Google Scholar 

  • Xu, B. 2003. Trade liberalization, wage inequality, and endogenously determined non-traded goods. Journal of International Economics 60: 417–431.

    Article  Google Scholar 

  • Yano, M., and J.B. Nugent. 1999. Aid, nontraded goods, and the transfer paradox in small countries. American Economic Review 89: 431–449.

    Article  Google Scholar 

  • Yntema, T.O. 1932. A mathematical reformulation of the general theory of international trade. Chicago: University of Chicago Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. http://link.springer.com/referencework/10.1057/978-1-349-95189-5

    A. D. Woodland

Authors
  1. A. D. Woodland
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Copyright information

© 2018 Macmillan Publishers Ltd.

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Woodland, A.D. (2018). Tradable and Non-tradable Commodities. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1773

Download citation

Publish with us

Policies and ethics

Search

Navigation