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This book presents new research on combining the theory of economic growth with the theory of international trade and international factor movements. As growth theory, it studies the behaviour of fundamental dynamic models (deterministic, stochastic) of trading economies. As trade theory, it is concerned with gains from trade and dynamic welfare implications of regulations and strategic trade policy. The contributors include: Alan Deardorff, Murray Kemp, Henry Wan Jr., Oded Stark, Michael Devereux, Theo van de Klundert, Sjak Smulders, Ngo Long and Koji Shimomura.