New theories of international trade

Here are some new theories of international trade that have emerged in recent years:

1. Gravity Model of Trade: This model, developed by Andrew Rose (2004), suggests that trade between two countries is influenced by the distance between them, their economic size, and the cultural and linguistic similarities between their populations.
2. New Economic Geography (NEG): This theory, developed by Paul Krugman (1991) and others, emphasizes the role of geography in shaping international trade patterns. It suggests that trade is influenced by the location of firms, the cost of transportation, and the presence of natural resources.
3. Global Value Chains (GVCs): This concept, developed by Gary Gereffi (1994) and others, highlights the increasing importance of international trade in intermediate goods and services, such as components, parts, and labor services.
4. Services Trade: With the rise of services trade, new theories have emerged to explain the patterns and determinants of services trade. For example, the Services Trade Theory (STT) developed by Robert Feenstra (2004) emphasizes the role of services in facilitating trade in goods.
5. Intra-Industry Trade (IIT): This theory, developed by Ronald Jones (1971) and others, suggests that trade between countries is not limited to trade between different industries, but also occurs within industries, such as between different types of cars or electronics.
6. Trade and Economic Growth: The Trade and Economic Growth theory, developed by Jeffrey Frankel (1994) and others, suggests that trade can stimulate economic growth by increasing competition, improving resource allocation, and promoting innovation.
7. Trade and Inequality: The Trade and Inequality theory, developed by David Autor (2013) and others, suggests that trade can have both positive and negative effects on income inequality, depending on the sectoral composition of trade and the distribution of gains from trade.
8. Trade and Climate Change: The Trade and Climate Change theory, developed by Thomas Stoerk (2013) and others, suggests that trade can play a crucial role in addressing climate change by promoting the development and diffusion of clean technologies and reducing carbon emissions.
9. Digital Trade: The Digital Trade theory, developed by Robert Feenstra (2019) and others, highlights the growing importance of digital trade, including e-commerce, digital services, and data flows, and their impact on international trade patterns.
10. Trade and Development: The Trade and Development theory, developed by Anne Krueger (1978) and others, suggests that trade can play a crucial role in promoting economic development in developing countries by increasing access to markets, technology, and investment.

These new theories of international trade reflect the changing nature of global trade, including the rise of services trade, digital trade, and global value chains, as well as the increasing importance of trade in promoting economic growth, development, and environmental sustainability.