Developing countries typically have wage rates that are a small fraction
of those in developed countries. Trade theories traditionally attributed
this difference to two factors: the relative abundance of the labor
supply in the two countries and the relative value of the goods
produced. These factors, however, inadequately explain the full
differential in almost every comparison of developed and developing
countries since the second World War.
Providing an important and original perspective for understanding both
the development process and policies aimed at raising the standard of
living in poorer nations, Perspectives on Trade and Development
gathers sixteen of Anne O. Krueger's most important essays on
international trade and development economics. Her essays discuss the
relationships between trade strategies and development; the links
between factor endowments, developing countries' policies, and trade
strategies in terms of their growth; the role of economic policy in
development; and the international economic environment in which
development efforts are taking place. Her analyses are extended to trade
and development policies generally, and account for a substantial part
of the residue unexplained by past theories. This insightful
contribution by an influential scholar will be essential reading for all
scholars of trade and development.
