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Jagdish N. Bhagwati

Jagdish Bhagwati is University Professor at Columbia University and External Advisor to the Director General, World Trade Organization and Senior Fellow for International Economics with the Council on Foreign Relations. He was named Distinguished Fellow of the American Economic Association in 2003.

Titles by This Author

What Response from U.S. Economic Policy?

It is no surprise that many fearful American workers see the call center operator in Bangalore or the factory worker in Guangzhou as a threat to their jobs. The emergence of China and India (along with other, smaller developing countries) as economic powers has doubled the supply of labor to the integrated world economy. Economic theory suggests that such a dramatic increase in the supply of labor without an accompanying increase in the supply of capital is likely to exert downward pressure on wages for workers already in the integrated world economy, and wages for most workers in the United States have indeed stagnated or declined. In this book, leading economists Jagdish Bhagwati and Alan S. Blinder offer their perspectives on how the outsourcing of labor and the shifting of jobs to lower-wage countries affect the U.S. economy and what, if any, policy responses are required. Bhagwati, in his colorful and pithy style, focuses on globalization and free trade, while Blinder, erudite and witty, addresses the significance of labor market adjustment caused by trade. Bhagwati’s and Blinder’s contributions are followed by comments from economists Richard Freedman, Douglas A. Irwin, Lori G. Kletzer, and Robert Z. Lawrence. Bhagwati and Blinder then respond separately to the issues raised. Benjamin Friedman, who edited this volume (and organized the symposium that inspired it), provides an introduction.

How Washington Mismanaged Globalization

In The Wind of the Hundred Days, a new collection of public policy essays, Jagdish Bhagwati applies his characteristic wit and accessible style to the subject of globalization. Notably, he argues that the true Clinton scandal lay in the administration's mismanagement of globalization—resulting in the paradox of immense domestic policy success combined with dramatic failure on the external front. Bhagwati assigns the bulk of the blame for the East Asian financial and economic crisis—a disaster that prompts him to use as his title the poet Octavio Paz's image of devastation "I met the wind of the hundred days"—to the administration's hasty push for financial liberalization in the region.

The administration, Bhagwati claims, has also mishandled the freeing of trade. The administration-hosted WTO meeting in Seattle ended in chaos and the launch of a new round of multilateral trade negotiations was dashed. Bhagwati shows how the administration's failure to get Congress to renew fast-track authority can be attributed to an unimaginative response to the demands of a growing civil society. In several essays, he shows how free trade and social agendas both could have been pursued successfully if the concerns of human-rights, environmental, cultural, and labor activists had been met through creative programs at appropriate international agencies such as the International Labour Organization instead of the WTO and via trade treaties. Bhagwati also criticizes the claim that "globalization needs a human face," arguing that it already has one. He faults the administration for embracing unsubstantiated anti-globalization rhetoric that has made its own preferred option of pursuing globalization that much more difficult.

Unsettling Reflections on Trade, Immigration, and Democracy


Winner of the 1998 Eccles Prize for Excellence in Economic Writing

A Stream of Windows offers a selection of Jagdish Bhagwati's recent policy writings, in which he forcefully opposes the demonization of Japan, challenges the bipartisan bashing of illegal immigrants, refutes the conventional view that democracy hinders development, and much more.


The greatest strength of this thoroughly revised and expanded edition of Lectures on International Trade is its rigorous algebraic and geometric treatment of the various models and results of trade theory. The authors, who now include Arvind Panagariya, offer both policy insights and empirical applications. They have added nine entirely new chapters as well as new sections to several existing chapters (e.g., a greatly expanded treatment of the growing theory of preferential trade agreements).

Political Economy and International Economics is the fifth volume of collected essays by the noted economist Jagdish Bhagwati. Following Essays in International Economic Theory (edited by Robert Feenstra) and Essays in Development Economics (edited by Gene Grossman), it reflects Bhagwati's wide range of interests and his rare ability to combine economic theory and political analysis.

Many of Bhagwati's writings provide fresh insights into old problems, from the theory of commercial policy, to foreign investment and labor migration; others open up new areas such as services to analysis. Recent work on the theory of political economy, including DUP (directly unproductive profit-seeking) activities and quid pro quo direct investment, breaks new ground. Also included are a number of previously inaccessible lectures covering such important issues as poverty and public policy. Cutting across several fields of economics, including public finance and development, these provide masterly syntheses and overviews of broader issues.

A leading international economist looks at many of the key issues of trade policy now confronting the United States and the world in this timely book. Jagdish Bhagwati provides a clear, informative, and witty analysis of the protection debate and offers a prescription for reform

Jagdish Bhagwati is Arthur Lehman Professor of Economics and Professor of Political Science at Columbia University, and is a Fellow of the American Academy of Arts and Sciences.

The Theory of Commercial Policy

These two volumes contain seventy essays chosen largely for the originality of their contributions.

The first volume contains several classic papers. Among them are the many contributions to the theory of distortions in the 1960s which laid the foundations of the postwar theory of commercial policy. Also included are Bhagwati's important papers of the 1970s and 1980s which have shaped a new revolution in the theory of trade and welfare: the political-economy-theoretic analysis of DUP (directly-unproductive profit-seeking) activities. Influential essays on the nonequivalence of tariffs and quotas, immiserizing growth, cost-benefit analysis in open economies, and other major areas of trade theory are covered.

The second volume presents essays that have opened up new areas of analysis in the theory of international trade and in the associated fields of public finance and developmental economics. Bhagwati's seminal work on the novel question of the appropriate income tax jurisdiction in the presence of international factor mobility, his well-known analyses of the consequences of skilled migration, the problem of the optimal choice between international capital and labor mobility, are all included.

International Factor Mobility

These two volumes contain seventy essays chosen largely for the originality of their contributions.

The first volume contains several classic papers. Among them are the many contributions to the theory of distortions in the 1960s which laid the foundations of the postwar theory of commercial policy. Also included are Bhagwati's important papers of the 1970s and 1980s which have shaped a new revolution in the theory of trade and welfare: the political-economy-theoretic analysis of DUP (directly-unproductive profit-seeking) activities. Influential essays on the nonequivalence of tariffs and quotas, immiserizing growth, cost-benefit analysis in open economies, and other major areas of trade theory are covered.

The second volume presents essays that have opened up new areas of analysis in the theory of international trade and in the associated fields of public finance and developmental economics. Bhagwati's seminal work on the novel question of the appropriate income tax jurisdiction in the presence of international factor mobility, his well-known analyses of the consequences of skilled migration, the problem of the optimal choice between international capital and labor mobility, are all included.

Wealth and Poverty

Essays in Development Economics collects many of Jagdish Bhagwati's writings that have established him as a major postwar developmental economist. The selection is diverse and highlights the close relationship and mutual reinforcement in Bhagwati's research between economic theory, empirical validation, and policy debate.Volume I, Wealth and Poverty, addresses domestic or internal development problems. Its 22 essays are divided into five parts covering Development Theory and Strategy; Economic Structure: Regularities and Explanations; Class Structure, Poverty, and Redistrbution; Technology and Employment; and Eminent Economists: Sketches and Commentary.Volume 2, Dependence and Interdependence, deals with international or external problems and its 20 essays are in four parts covering North-South Issues; Developmental Strategy: Import Substitution versus Export Promotion; Foreign Assistance; and International Migration and Investment.Within each volume, the essays are topically grouped and preceded by brief introductions by the author discussing his current views of the nature of the contributions and the relationship among them. In several cases, previously unpublished papers or postscripts to previously published papers have been added to round out the sections.Jagdish N. Bhagwati is Arthur Lehman Professor of Economics and Director of the International Economics Research Center at Columbia University. Essays in Development Economics, in conjunction with the two-volume work, Essays in International Economic Theory (edited by Robert C. Feenstra, MIT Press), constitute a comprehensive selection of Bhagwati's influential and important contributions to the theory and policy of development and of international trade. Gene M. Grossman is Assistant Professor of Economics and International Affairs, Princeton University.

Dependence and Interdependence

Essays in Development Economics collects many of Jagdish Bhagwati's writings that have established him as a major postwar developmental economist. The selection is diverse and highlights the close relationship and mutual reinforcement in Bhagwati's research between economic theory, empirical validation, and policy debate.Volume I, Wealth and Poverty, addresses domestic or internal development problems. Its 22 essays are divided into five parts covering Development Theory and Strategy; Economic Structure: Regularities and Explanations; Class Structure, Poverty, and Redistrbution; Technology and Employment; and Eminent Economists: Sketches and Commentary.Volume 2, Dependence and Interdependence, deals with international or external problems and its 20 essays are in four parts covering North-South Issues; Developmental Strategy: Import Substitution versus Export Promotion; Foreign Assistance; and International Migration and Investment.Within each volume, the essays are topically grouped and preceded by brief introductions by the author discussing his current views of the nature of the contributions and the relationship among them. In several cases, previously unpublished papers or postscripts to previously published papers have been added to round out the sections.Jagdish N. Bhagwati is Arthur Lehman Professor of Economics and Director of the International Economics Research Center at Columbia University. Essays in Development Economics, in conjunction with the two-volume work, Essays in International Economic Theory (edited by Robert C. Feenstra, MIT Press), constitute a comprehensive selection of Bhagwati's influential and important contributions to the theory and policy of development and of international trade. Gene M. Grossman is Assistant Professor of Economics and International Affairs, Princeton University.

Essays in International Economics

Professor Bhagwati has brought together in this volume his most important theoretical writings on international economics through 1969. A major contribution to the pure theory of international trade—his Economic Journal survey of the subject—is reprinted with an addendum which brings it up to date. In addition, there are papers on propositions relating to gains from trade, and papers on tariffs, quotas and subsides, which cover both 'positive' and welfare aspects of trade theory. Reprinted here are his well-known papers on immiserizing growth, including a recent generalization, and on the theory of optimal policy intervention under domestic distortions. Four important essays on growth and development round out the volume. The fifteen essays reprinted in this collection comprise all the most original contributions and surveys which have established Professor Bhagwati as a leading theorist of international trade. The wide range of topics covered makes the whole book invaluable to all students of international economics.

Titles by This Editor

Today millions of people work in countries where they are not citizens. Income Taxation and International Mobility addresses the novel theoretical and practical problems that this growing phenomenon of international personal mobility creates for the design of a country's tax system and takes up questions that have grown largely out of the extensive debate over Jagdish Bhagwati's proposal in the early 1970s to "tax the brain drain."

The contributors, who include many of the leading theorists of international economics and public finance, look at how the difficult question of how horizontal equity is to be defined - between nationals at home and abroad or between nationals abroad and foreign citizens abroad - and tackle such questions as Should a country exercise income tax jurisdiction over its citizens abroad? If so, in what way? Is it practical to do so? The issues that these questions raise are complex, lying on the interface of politics, sociology, and economics.

Income Taxation and International Mobility breaks significant new ground by analyzing these questions and building on the modern theory of optimal income taxation to examine the consequences of the possibility of outmigration on the appropriate exercise and design of income tax jurisdiction on those who live outside their native country.

Theoretical analyses are presented in six chapters by the editors and by James Mirrlees, William Baumol, and Koichi Hamada. The well known tax law expert, Richard Pomp, examines the Philippines experience in taxing citizens abroad. The editors provide a substantial introduction that synthesizes the book's major analytical approaches and conclusions, and Richard Musgrave provides an insightful view of the issues in his Foreword.

The Case for Relaxed Reciprocity in Freeing Trade

Since the end of World War II, the freeing of trade has been most visible in reciprocal liberalization agreements negotiated under the General Agreement on Tariffs and Trade, or GATT, and through increasing bilateral and plurilateral agreements. There has also, however, been a significant, if less visible, unilateral freeing of trade by several nations.

This book, based on a research project directed by Jagdish Bhagwati, examines the experiences with such unilateral trade liberalization. Part 1 considers historical experiences, following Britain’s unilateral embrace of free trade. Part 2 discusses recent examples, and Part 3 discusses unilateral liberalization in specific sectors. The substantive introduction provides a synthesis of the findings as well as theoretical support. It argues that although unilateral freeing of trade is generally less beneficial than reciprocity, it can trigger "sequential" reciprocity through example or by encouraging lobbies abroad to favor trade expansion.

Alternative Approaches to Analyzing Preferential Trade Agreements

The recent proliferation of free trade areas and customs unions in the world trading system has led to an explosive revival of interest in the economic analysis of Preferential Trade Arrangements (PTAs). The principal theoretical question of the 1950s and 1960s (Viner) was whether PTAs would create or divert trade, causing welfare improvement or loss. The principal theoretical question (Bhagwati) of the late 1980s and 1990s has been whether PTAs encourage or discourage the worldwide nondiscriminatory freeing of trade. The essays in this volume present the central contributions to the analytical approaches developed to examine these questions.

The first section of the book presents a synthesis and analytical guide to the issues, and to the theoretical research, as they have developed since 1950. The following sections contain the theoretical contributions themselves, grouped by analytical approach. This volume will enable graduate students, scholars of PTAs, and policymakers concerned with trade liberalization to grasp the analytical relationships among the sometimes disparate contributions of nearly a half century of theoretical research on PTAs.

Contributors:
Richard Baldwin, Jagdish Bhagwati, Richard Brecher, C. A. Cooper, W. Max Corden, Alan Deardorff, Ronald Findlay, Earl Grinols, Gene Grossman, Elhanan Helpman, Harry G. Johnson, Murray C. Kemp, Pravin Krishna, Paul Krugman, Philip Levy, R. G. Lipsey, B. F. Massell, Robert Mundell, Arvind Panagariya, Martin Richardson, T. N. Srinivasan, Robert Stern, Lawrence Summers, Jacob Viner, Henry Y. Wan, Jr.

Political Economy and International Economics is the fifth volume of collected essays by the noted economist Jagdish Bhagwati. Following Essays in International Economic Theory (edited by Robert Feenstra) and Essays in Development Economics (edited by Gene Grossman), it reflects Bhagwati's wide range of interests and his rare ability to combine economic theory and political analysis.

Many of Bhagwati's writings provide fresh insights into old problems, from the theory of commercial policy, to foreign investment and labor migration; others open up new areas such as services to analysis. Recent work on the theory of political economy, including DUP (directly unproductive profit-seeking) activities and quid pro quo direct investment, breaks new ground. Also included are a number of previously inaccessible lectures covering such important issues as poverty and public policy. Cutting across several fields of economics, including public finance and development, these provide masterly syntheses and overviews of broader issues.

Economic Analysis


The original contributions in Fair Trade and Harmonization investigate the growing conflict between free trade policies and the domestic environmental, labor, and antitrust policies of individual nations. They clarify the issues and offer a critical economic and legal analysis of the contending positions along with a series of proposals for resolving or reconciling them. Taken together, the two volumes present a comprehensive catalog of the government actions that are causing conflict in these areas and a critique of the existing scholarly literature on the subject.

In each area, the contributors extensively discuss and analyze forms of policy harmonization and the arguments for and against it, with a goal of better understanding as a constant throughout. A more particular goal, however is to take a sober second look at, and impose some restraint upon, the growing chorus of demands to push aside the existing trade institution (the World Trade Organization) in the name of social policies, especially those regarding environmental and labor rights.

Contributors:

Volume 1. Jagdish Bhagwati. Christopher Bliss. Drusilla K. Brown. Alessandra Casella. Richard H. Clarida. Alan V. Deardorff. Alvin K. Klevorick. David W. Leebron. James Levinsohn. Arik Levinson. John McMillan. Andre Sapir. Gary R. Saxonhouse. Joel Slemrod. T. N. Srinivasan. Robert M. Stern. John Douglas Wilson.


Legal Analysis

The original contributions in Fair Trade and Harmonization investigate the growing conflict between free trade policies and the domestic environmental, labor, and antitrust policies of individual nations. They clarify the issues and offer a critical economic and legal analysis of the contending positions along with a series of proposals for resolving or reconciling them. Taken together, the two volumes present a comprehensive catalog of the government actions that are causing conflict in these areas and a critique of the existing scholarly literature on the subject.

In each area, the contributors extensively discuss and analyze forms of policy harmonization and the arguments for and against it, with a goal of better understanding as a constant throughout. A more particular goal, however is to take a sober second look at, and impose some restraint upon, the growing chorus of demands to push aside the existing trade institution (the World Trade Organization) in the name of social policies, especially those regarding environmental and labor rights.

Contributors:

Volume 2. Kenneth W. Abbott. Richard D. Boltuck. Ronald A. Cass. Daniel A. Farber. Daniel J. Gifford. Brian Hindley. Robert E. Hudec. Brian A. Langille. Virginia A. Leary. Mitsuo Matsushita. Frieder Roessler.

 

Selected Readings

This text collects the most important contributions to the theory of international trade in recent decades, including the many new approaches developed during the 1980s. Of the 28 chapters in major sections covering general equilibrium, trade pattern theories, imperfect competition and market structure, quotas and VERs, theory of distortions, direct unproductive profit-seeking and rent-seeking activities, customs unions, growth and transfers, and foreign investment, 16 are new to this edition.

These new pieces focus on such currently active areas as the treatment of market structure, explored chiefly by economists Avinash Dixit, Jonathan Eaton and Gene M. Grossman, Paul R. Krugman, Elhanan Helpman, James Brander and Barbara Spencer, and imperfect competition and the theory of political economy, with key contributions by Anne 0. Krueger, Jagdish Bhagwati, Ronald Findlay, T. N. Srinivasan, Richard Brecher, Wolfgang Mayer, and several other younger trade theorists.

Other new selections take up developments within more traditional topics, such as the classic problem of the effects of transfers, the equivalence of tariffs and quotas, revived in the context of the effect of VERs, and the theory of multinational investments which has been affected by both the new theories of market structure and of political economy.

Jagdish N. Bhagwati is Arthur Lehman Professor of Economics and Director of the International Economics Research Center at Columbia University.

Power, Passions, and Purpose contains twelve original essays and a joint statement by distinguished economists, political scientists, and policy-makers, aimed at exploring new directions in North-South negotiations. Combining the talents of writers from different disciplines, it provides the first substantial treatment of the current stalemate in the North-South dialog, and shows how the situation can be creatively altered.

The book addresses a political and economic disjunction that arose in the late 1970s in the world economy. By that time, it was evident that the commodity power, which had given force to the Third World's demands for global negotiations concerning the rules of the international economic order, had vanished. Yet, the passions evoked by the Third World countries' perception of such power and by their desire for political and economic equity had not subsided: They originally informed the need for negotiations and provided a purpose which still endures. These contributions shed light on the history of North-South negotiations and offer a rigorous and imaginative analysis of the alternative course of action that must now be confronted.

An introduction by Jagdish N. Bhagwati is followed by sections on Global Negotiations (Bhagwati, John Gerard Ruggie, Albert Bressand, Muchkund Dubey, John Sewell and William Zartman); Power Sharing and Institutional Change (Catherine Gwin); Debts, Finance, and Trade (Carlos Diaz-Alejandro, Martin Wolf, Jere Behrman); and USSR-South and South-South (Padma Desai, Sanjaya Lall).