The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

International Economics, History of

  • M. June Flanders
Reference work entry


Starting with mercantilist theories, the article deals with laissez-faire rejections of mercantilism, the Ricardian justification of free trade and its extension to multiple countries and commodities. Heckscher–Ohlin trade theory, factor-price equalization and the ‘Leontieff paradox’ debate follow. Intra-industry trade is related to increasing returns, imperfect competition, and product differentiation. Trade and growth, economic geography, and tariffs and trade restrictions are summarized. Regarding macroeconomics, Hume and the monetary approach to the balance of payments are compared with income adjustment theories. International monetary regimes, exchange rate regimes, capital transfers, internal–external balance, and new international macroeconomics are discussed.


Absorption approach to the balance of payments Balance of trade Balance of payments Bank of England Beggar-my-neighbour Brand identification Cantillon, R. Classical economics Comparative advantage Cone of diversification Convertibility Corn Laws Devaluation Diffusion of technology Dirigisme Economic geography Elasticities approach to the balance of payments Eurozone Exchange rate regimes Factor price equalization Fixed exchange rates Fleming, J. M. Flexible exchange rates Foreign direct investment Full employment Gains from trade Gervaise, I. Gold standard Growth and international trade Haberler, G. Hayek, F. Heckscher–Ohlin trade theory Heckscher–Ohlin–Samuelson model Hume, D. Imperfect competition Increasing returns Infant-industry protection Innovation Intermediate products International capital flows International economics, history of International monetary theory International trade theory Internal–external balance Intra-industry trade Labour theory of value Leontief paradox Lerner, A. P. Locke, J. Long-term economic growth Meade, J. E. Mercantilism Microfoundations Monetary approach to the balance of payments Money multiplier Money supply Multinational corporations Mundell, R. New classical macroeconomics New international macroeconomics Offer curve or reciprocal demand curve Ohlin, B. Outsourcing Product differentiation Production possibility frontier Quantity theory of money Quotas and tariffs Ricardo, D. Smith, A. Specialization Specie-flow mechanism Sterilization Sticky wages Subsistence Taussig, F. Technological progress Terms of trade Tobin tax Torrens, R. Trade policy, political economy of Transfer problem Vent for surplus Walrasian general equilibrium 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • M. June Flanders
    • 1
  1. 1.