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Contents List of Figures ix List of Tables χι Acknowledgments xv C H A P T E R 1 An Overview of the Research, the Theories Underlying the Interpretation of the Results, and the Conclusions 3 1 1 The Neoclassical Model and the Analysis of Socialist Economies 5 1.2 Some Limitations of the Competitive Model Pertinent to the Study of Socialist Economies 10 1 3. Alternative Views 13 1.4 An Overview of the Book and a Foretaste of the Results 17 1 5. A Note for Skeptics 23 C H A P T E R 2 The Variables Used in the Analysis: Their Properties and Sources of Data 25 2.1 The Trade Data. An Overview 26 2.2 The Properties of Revealed Comparative Advantages 32 2.3 The Measurement of Factor Endowments 37 2 4. The Country Groupings Used in the Presentation of the Results 39 2.5. Further Details on the Trade Data 41 2.6. Details on the Data Used for the Measures of Factor Endowments 42 C H A P T E R 3 International Trade Theory and the Centrally Planned Economies 44 3.1 The Heckscher-Ohlm Model 45 3 2 Models of Product Differentiation and Economies of Scale 47 3 3 Further Elements of Trade Theory 50 3.4. Thinking about the Trade of CPEs. An Introduction 53 3.5. A Brief Overview of the Institutions of CPEs 56 3.6 The Decision-Making Environment for Producers 60 Vl Contents 3.7. The Nature of Production Technology 65 3.8. The Stock of Endowments 71 3.9. Preferences 75 3 10. The Relative Applicability of Neoclassical Trade Models in CPEs and MEs 78 C H A P T E R 4 Qualitative Information on Nonstandard Trade Determinants: Summary Statistics from Trade Data 82 4 1 Measures of Economic Performance Based on Trade Statistics Alone 83 4.2 The Groupings of Goods Used in the Analysis of RCAs 92 4 3. A Ladder of Trade. The Position of the Centrally Planned Economies 99 4.4. The Interaction of Production Characteristics and Economic System 106 4.5. The Character of Markets and the Behavior of Economic Systems 116 4.6 The Economic System and the Characteristics of Goods 131 4.7. Summarizing the Summary Statistics 138 C H A P T E R 5 The Econometrics of Estimating Endowments Implicit in Trade Decisions and Measuring Country Conformity to Trade Models 141 5.1. A Brief Overview of the Statistical Methods 142 5.2. The Underlying Model 144 5 3. The Derivation of Estimators of Factor Endowments Implicit in Trade 146 5 4. Measuring the Ability of the Models to Estimate Factor Endowments 148 5 5. Goodness-of-Fit Measures for Individual Countries 149 5 6. Estimating Factor Endowments Implicit in a Time Series of Trade Data 152 5.7. Construction of Trade Aggregates for Use in the Econometric Analysis 153 5.8. Computational Procedures 154 C H A P T E R 6 The Levels of Resource Endowments Implicit in Eastern European Trade Patterns: Estimates for Eleven Endowments 156 6.1 Models for Estimating Endowment Levels Implicit in Trade Decisions 158 6 2. Choosing Which Model to Use in Estimating the Endowments Implicit in the Trade Patterns of CPEs 163 6.3. Estimates of Resource Endowments Implicit in 1975 Trade Patterns 166 6.4. Time Series of Endowment Levels Implicit in Trade Patterns· 1966-1983 176 Contents VlI 6 5. On Possible Criticisms of This Book's Interpretations of the Results 181 6.6. Summarizing the Results 192 C H A P T E R 7 Measuring How Closely the Trade Patterns of Socialist and Capitalist Economies Fit Standard Trade Models 194 7.1. Possible Interpretations of Measures of How Closely Trade Patterns Fit Standard Trade Models 195 7.2. A Diagrammatic Exposition of the Calculation of the Measures 197 7 3. How the Measures Were Obtained, and the Basic Results 203 7.4 The Coherency Interpretation of the Measures 209 7 5. The Static Efficiency Interpretation of the Measures 210 7.6 Examining the Robustness of the Results 217 7.7. Conclusions 220 E P I L O G U E The Results and Some Questions They Raise 222 A P P E N D I X A Do RCAs Reveal Comparative Advantage? 229 A P P E N D I X B Derivation of Equations Representing Trade Models 237 A P P E N D I X C Interpreting the Values of RCAs...


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