Recent economic history suggests that a key element in economic growth
and development for many countries has been an aggressive export policy
and a complementary import policy. Such policies can be very effective
provided that resources are used wisely to encourage exports from
industries that can be com- petitive in the international arena. Also,
import protection must be used carefully so that it encourages infant
industries instead of providing rents to industries that are not
competitive. Policy makers may use a variety of methods of analysis in
planning trade policy. As computing power has grown in recent years
increasing attention has been give to economic models as one of the most
powerful aids to policy making. These models can be used on the one hand
to help in selecting export industries to encourage and infant
industries to protect and on the other hand to chart the larger effects
ofttade policy on the entire economy. While many models have been
developed in recent years there has not been any analysis of the
strengths and weaknesses of the various types of models. Therefore, this
monograph provides a review and analysis of the models which can be used
to analyze dynamic comparative advantage.