Robert Mitchell Stern

Because of the close links between the United States and Japan in trade, foreign direct investment, financial flows, exchange rates, international prices, and government policies, it is important to develop a better understanding of these links and how they may be turned to the advantage of all involved by improvements in the international policy environment. This book deals with the potential for such improvements as part of formal government-to-government negotiations in the multilateral context in the World Trade Organization (WTO), regionally in the Asia-Pacific Economic Cooperation (APEC) forum, and bilaterally with the administration of national trade laws and the negotiation of free trade agreements. The chapters represent a spectrum of approaches, including theoretical analysis, quantitative measurement, and evaluations of policies and institutions from economic and legal perspectives. The multi-lateral issues cover the analysis of the economic effects of a new WTO negotiating round and the range of issues that are to be addressed there, including reform of Japan's agricultural policies, services liberalization, antidumping, intellectual property rights, and trade and the environment. The regional issues include theoretical and simulation analysis of the benefits of preferential trading arrangements and the policy of open regionalism that is being sought by APEC members. U. S.-Japan bilateral relations are studied by analyzing the major actions and positions taken by the two nations in the context of their national trade laws and policies, how trade policies are implemented, the effects of bilateral trade agreements on the United States and Japan, and the interplay of legal decisions reached in WTO actions with bilateral and unilateral measures undertaken by the two nations. The book is designed for a broad audience consisting of academic economists, lawyers, policymakers, and students interested in U. S.-Japan international economic relations. Robert M. Stern is Professor Emeritus of Economics and Public Policy, University of Michigan.

The contributors to this volume, economists and political scientists from academic institutions, the private sector, and the Ways and Means Committee of the U. S. House of Representatives, came together to discuss an important topic in the formation of U. S. international trade policy: the representation of constituent interests. In the resulting volume they address the objectives of groups who participate in the policy process and examine how each group's interests are identified and promoted. They look at what means are used for these purposes, and the extent to which the groups' objectives and behavior conform to how the political economy of trade policy is treated in the economic and political science literature. Further, they discuss how effective each group has been. Each of the book's five parts offers a coherent view of important components of the topic. Part I provides an overview of the normative and political economy approaches to the modeling of trade policies. Part 2 discusses the context of U. S. trade policies. Part 3 deals with the role of sectoral producing interests, including the relationship of trade policy to auto, steel, textile, semiconductor, aircraft, and financial services. Part 4 examines other constituent interests, including the environment, human rights, and the media. Part 5 provides commentary on such issues as the challenges that trade policy poses for the new administration and the 105th Congress. The volume ultimately offers important and more finely articulated questions on how trade policy is formed and implemented. Contributors are Robert E. Baldwin, Jagdish Bhagwati, Douglas A. Brook, Richard O. Cunningham, Jay Culbert, Alan V. Deardorff, I. M. Destler, Daniel Esty, Geza Feketekuty, Harry Freeman, John D. Greenwald, Gene Grossman, Richard L. Hall, Jutta Hennig, John H. Jackson, James A. Levinsohn, Mustafa Mohatarem, Robert Pahre, Richard C. Porter, Gary R. Saxonhouse, Robert E. Scott, T. N. Srinivasan, Robert M. Stern, Joe Stroud, John Sweetland, Raymond Waldmann, Marina v. N. Whitman, and Bruce Wilson. Alan V. Deardorff and Robert M. Stern are Professors of Economics and Public Policy, University of Michigan.

Major economic reforms undertaken since 1991 have brought the Indian economy into a new phase of development directed toward becoming globally competitive through the opening of trade, foreign investment, and technology inflows. The private sector is expected to play a lead role, with a corresponding reduction in the role played by the public sector. This book is aimed at analyzing the comparative static effects of selected post-1991 trade and domestic policy reforms on trade, factor prices, economic welfare, and the intersectoral allocation of resources. The study relies on a computable general equilibrium (CGE) model that has been specially designed to analyze the potential economic effects of India's policy reforms. The model was developed in a collaborative effort involving the National Council of Applied Economic Research in New Delhi and the University of Michigan. Patterned after the Michigan CGE Model of World Production and Trade that has been in use for more than two decades, the India CGE model features closer attention to special characteristics of India's economic structure, including more agricultural sector detail, allowance for state ownership, and administered pricing. The conclusions of the study suggest that the policy reforms will yield increased real returns to land, labor, and capital, and shift the terms of trade in favor of Indian agriculture. Lastly, not only are there efficiency-enhancing intersectoral shifts in resource allocation but there are notable increases in scale economies across the Indian manufacturing sectors. Rajesh Chadha and Sanjib Pohit are Economists at the National Council of Applied Economic Research in New Delhi. Alan V. Deardorff and Robert M. Stern are Professors of Economics and Public Policy, University of Michigan.

The Michigan Model of World Production and Trade, developed in the 1970s by Alan V. Deardorff and Robert M. Stern, has become a valuable tool widely used in research on the economic effects of national and multilateral trade policies. Computational Analysis of Global Trading Arrangements presents the recent developments and enhancements of the Michigan Model together with the major results that it has provided in the last seven years. The book provides a detailed exposition of the model, and chapters describe its applications to a variety of important issues of trade policy in the United States, Japan, and other major industrialized and developing countries. It includes an analysis of negotiating options in the GATT (Uruguay) Round of Multilateral Trade Negotiations. The Michigan Model discussed here provides an empirical framework within which to analyze the twenty-nine producing sectors that make up each of the world's major industrialized and developing countries. Hence, it allows the authors to demonstrate the impact upon a given country—on top of the effects of its own trade policies—of the tariffs and nontariff barriers of foreign countries. The authors of Computational Analysis of Global Trading Arrangements have compiled a volume that underscores the importance of economic interdependence in the global trading system.