December, 2013

Firms in the International Economy (Beugelsdijk, Brakman, Garretsen, Van Ees)


Despite their common roots, international economics (IE) and international business (IB) have developed into two distinct fields of study. Economists have directed their efforts at formalizing the workings of international trade and investment at the macroeconomic level; business scholars have relied more on data-driven conceptual narratives than mathematical tools. But the recent focus of IE literature on firm heterogeneity suggests that IE would benefit from IB analyses of the behavior and organization of the internationalizing firm. The contributions to this volume investigate ways that insights from IB can enrich IE research in firm heterogeneity. The contributors discuss firm-specific advantages in international trade and investment, considering the firm as the unit of analysis and managerial inputs as a variable in market entry decisions; analyze interactions between a firm and its external environment, including local corporate philanthropy and institutional settings; examine the boundaries of the firm and organizational choices such as the make-or-buy decision; and investigate technology transfer and innovation offshoring, discussing the role of subsidiaries, inventor employment, and other related topics. Although IE and IB look at international firms from different perspectives, these contributions make it clear that there is a potential for a productive exchange of insights and information between the two disciplines.

Laura Abramovsky, Carlo Altomonte, Sjoerd Beugelsdijk, Bruce Blonigen, Pamela Bombarda, Steven Brakman, Julia Darby, Rodolphe Desbordes, Filippo Di Mauro, María García-Vega, Harry Garretsen, Elena Huergo, Florian Mayneris, Quyen T. K. Nguyen, Verena Nowak, Cheyney O’Fallon, Gianmarco Ottaviano, Michael Pflüger, Filomena Pietrovito, Sandra Poncet, Alberto Franco Pozzolo, Alan M. Rugman, Armando Rungi, Stephan Russek, Davide Sala, Luca Salvatici, Christian Schwarz, Roger Smeets, Jens Suedekum, Hans van Ees, Vincent Vicard, Ian Wooton, Erdal Yalcin

link to MIT

April 29, 2013

International Economics and Business (Beugelsdijk, Brakman, Garretsen, Van Marrewijk)


With a new title (following the successful first edition of Nations and Firms in the Global Economy), this second edition undergraduate textbook combines the dual perspectives of international economics and international business, providing a complete overview of the changing role of nations and firms in the global economy. International Economics and Business covers the key concepts typically included in an introductory course on the global economy, supported by contemporary case studies from the international business world. The result is a practical guide to the world economy for undergraduate students in economics and business, also suitable for students in other social science disciplines. Updated to include the latest theoretical insights, data and case studies, with online quizzes, data exercises and additional reading, International Economics and Business is a lively and engaging textbook providing a complete and practical understanding of international economics and globalization through a uniquely integrated lens.

link to CUP

March 28, 2010

The Gravity Model in International Trade


How do borders affect trade? Are cultural and institutional differences important for trade? Is environmental policy relevant to trade? How does one's income or wage relate to the fact that trade partners are nearby or far away? These are just some of the important questions that can be answered using the gravity model of international trade. This model predicts and explains bilateral trade flows in terms of the economic size and distance between trading partners (e.g. states, regions, countries, trading blocs). In recent years, there has been a surge of interest in this model and it is now one of the most widely applied tools in applied international economics. This book traces the history of the gravity model and takes stock of recent methodological and theoretical advances, including new approximations for multilateral trade resistance, insightful analyses of the measurement of economic distance and analyses of foreign direct investment.


  1. Introduction: the comeback of the gravity equation S. Brakman and P. A. G. van Bergeijk;
  2. Part I. Methodology:
  3. A general equilibrium theory for estimating gravity equations of bilateral FDI, final goods, and intermediate trade flows J. H. Bergstrand and P. Egger;
  4. The incidence of gravity J. E. Anderson;
  5. Approximating general equilibrium impacts of trade liberalizations using the gravity equation: applications to NAFTA and the European Economic Area S. L. Baier and J. H. Bergstrand;
  6. An extended gravity model with substitution applied to international trade J. A. Bikker;
  7. Part II. Distance in the Gravity Model:
  8. Illusory border effects: distance mismeasurement inflates estimates of home bias in trade K. Head and T. Mayer;
  9. Trade costs, market access and economic geography: why the empirical specification of trade costs matters M. Bosker and H. Garretsen;
  10. Intangible barriers to international trade: a sectoral approach J. Möhlmann, S. Ederveen, H. L. F. de Groot and G.-J. M. Linders;
  11. Part III. Specific Applications:
  12. International environmental arrangements and international commerce A. Rose and M. Spiegel;
  13. Diplomatic relations and trade reorientation in transition countries E. Afman and M. Maurel;
  14. Unlocking the value of cross-border mergers and acquisitions S. Brakman, H. Garretsen, G. Garita and C. van Marrewijk;
  15. The impact of economic geography on GDP per capita in OECD countries H. Boulhol and A. de Serres;

Contributors: J.E.Anderson, S. Brakman, P. A. G. van Bergeijk, J. H. Bergstrand, P. Egger, S. L. Baier, J. H. Bergstrand, J. A. Bikker, K. Head, T. Mayer, M. Bosker, H. Garretsen, J. Möhlmann, S. Ederveen, H. L. F. de Groot, G.-J. M. Linders, A. Rose, M. Spiegel, E. Afman, M. Maurel, G. Garita, C. van Marrewijk, H. Boulhol, A. de Serres

2010, Cambridge University Press.

link to CUP

    Book review: Review of International Economics, 19(5), 979–981, 2011, see here HERE

The New Introduction to Geographical Economics


Steven Brakman, Harry Garretsen, Charles van Marrewijk.

2009, Cambridge University Press.

Geographical economics starts from the observation that economic activity is clearly not randomly distributed across space. This revised and updated introduction to geographical economics uses the modern tools of economic theory to explain the who, why and where of the location of economic activity. Key features:
• Provides an integrated, first-principles introduction to geographical economics for advanced undergraduate students and first-year graduate students • Thoroughly revised and updated to reflect important recent developments in the field, including new chapters on alternative core models and policy implications
• Presents a truly global analysis of issues in geographical economics using case studies from all over the world, including North America, Europe, Africa and Australasia
• Contains many computer simulations and end-of chapter exercises to encourage learning and understanding through application

Revised and updated edition of a successful introduction to geographical economics • Includes extensive use of examples, computer simulations and figures to explain models • End-of-chapter exercises allow readers to monitor their progress

detailed information -excercises, figures, etc - can be found HERE.

Foreign Direct Investment and the Multinational Enterprise


Eds.: Steven Brakman, Harry Garretsen, 2008, MIT Press. ISBN-10: 0-262-02645-7

The multinational firm and its main vehicle, foreign direct investment, are key forces in economic globalization. Their importance to the world economy can be seen in the fact that since 1990 foreign direct investment has grown more rapidly than the world GDP and world trade. Despite this, the causes and consequences of multinational firm activity are little understood and until recently relatively unexamined in the theoretical literature. This CESifo volume fills this gap, examining the multinational enterprise (MNE) and foreign direct investment (FDI) from both theoretical and empirical perspectives. In the theoretical chapters, leading scholars take a wide range of modern analytical approaches--from new growth and trade theories to new economic geography, industrial organization, and game theory. Taking current theoretical work on MNE and FDI as a starting point and aiming to extend the existing theoretical framework, the contributors consider such topics as investment liberalization and firm location, tax competition, and welfare consequences of FDI and outsourcing. The empirical chapters test several of the key hypotheses of recent theoretical work on MNE and FDI, examining topics that include productivity effects on Italian MNEs, the different effects of outsourcing in Austria and Poland, location decisions of MNEs in the European Union, and other topics.

Contributors: Oscar Amerighi, Bruce A. Blonigen, Steven Brakman, Davide Castellani, Ronald B. Davies, Alan V. Deardorff, Fabrice Defever, Harry Garretsen, Anders N. Hoffmann, Andzelika Lorentowicz, James R. Markusen, Charles van Marrewijk, Dalia Marin, James R. Markusen, Alireza Naghavi, Helen T. Naughton, Giorgio Barba Navaretti, J. Peter Neary, Gianmarco Ottaviano, Alexander Raubold, Glen R. Waddell.

See the brochure at MIT Press.

New Economic Geography, Empirics, and Regional Policy

Steven Brakman, Harry Garretsen, Joeri Gorter. Albert van der Horst, Marc Schramm, 2005, CPB.

ISBN 90-5833-281-0.

Downloadable: click here for the file.

Nations and Firms in the Global Economy


Steven Brakman, Harry Garretsen, Charles van Marrewijk, and Arjen van Witteloostuijn, 2005, Cambridge University Press.

At Cambridge University Press.

Preadviezen van de Koninklijke Vereniging voor de Staathuishoudkunde, 2003
Also as "Location and Competition, 2004, Routledge, London"

In Dutch

In 1933 merkte de latere Nobelprijswinnaar economie Bertil Ohlin reeds op dat het vakgebied van de internationale handel en de ruimtelijke economie in principe hetzelfde onderzoeksobject hebben. Beide disciplines proberen de vraag te beantwoorden wie, wat, waar produceert en waarom. Sindsdien hebben beide vakgebieden zich meer of minder los van elkaar ontwikkeld. Hoe beide vakgebieden weer bij elkaar komen en de consequenties daarvan is het onderwerp van de preadviezen van 2003.

Downloadable: click here for the file.

More at , Routledge.

The Monopolistic Competition Revolution in Retrospect


Eds.: Steven Brakman and Ben Heijdra, Cambridge University Press, 2004

In 1977 a seminal paper was published by Avinash Dixit and Joseph Stiglitz that revolutionized the modeling of imperfectly competitive markets. It launched what might be called the second monopolistic competition revolution which has been far more successful than the first one, initiated by Edward Chamberlin and Joan Robinson in the 1930s. In this collection of original essays experts in the fields of macroeconomics, international trade theory, economic geography, and international growth theory address the question of why the second revolution was so successful. They also highlight what is missing, and look forward to the next step in the modeling of imperfectly competitive markets. The text includes a comprehensive survey of both monopolistic competition revolutions, and previously unpublished working papers by Dixit and Stiglitz that led to their famous 1977 paper. Other contributors include Joe Stiglitz, Avinash Dixit, Wilfred Ethier, Joe Francois, Richard Baldwin, Vernon Henderson and Peter Neary.

More at CUP.

An Introduction to Geographical Economics


Steven Brakman, Harry Garretsen, Charles van Marrewijk, Cambridge University Press, 2001

The need for a better understanding of the role location plays in economic life was first and most famously made explicit by Bertil Ohlin in 1933. However it is only recently, with the development of computer packages able to handle complex systems, as well as advances in economic theory (in particular an increased understanding of returns to scale and imperfect competition), that Ohlin’s vision has been met and a framework developed which explains the distribution of economic activity across space. This book is an integrated, non-mathematical, first-principles textbook presenting Geographical Economics to advanced students. Never avoiding advanced concepts, its emphasis is on examples, diagrams, and empirical evidence, making it the ideal starting point prior to monographic and journal material. Contains copious computer simulation exercises, available in book and electronic format to encourage learning and understanding through application. Uses case study material from North America, Europe, Africa and Australasia.

Chapter contents

  1. A first look at geography, trade and development
  2. Geography and economic theory
  3. The core model of geographical economics
  4. Solutions and simulations
  5. Geographical economics and empirical evidence
  6. Refinements and extensions
  7. Cities and congestion: the economics of Zipf’s Law
  8. Agglomeration and international business
  9. The structure of international trade
  10. Dynamics and economic growth
  11. The policy implications and value added of geographical economics

More at CUP.

Mondiale economie


Steven Brakman, Charles van Marrewijk, (1999), Mondiale Economie; feit en fictie, Uitgeverij Nieuwezijds, Amsterdam

More at Uitgeverij Nieuwezijds

The Economics of International Transfers


Steven Brakman en Charles van Marrewijk, (2009-1998) ,The Economics of International Transfers, Cambridge University Press, Cambridge

    Review in Journal of Economic Literature, and The Review of International Economics, see HERE

More at CUP

Jonge wijn in oude zakken


Steven Brakman en Arjen van Witteloostuijn, (2001),Jonge wijn in oude zakken, Arbeiderspers, Amsterdam

More at this books site

Market Behaviour and Macro Economic Modelling

Steven Brakman, Hans van Ees, and Simon Kuipers (1998),Market Behaviour and Macro Economic Modelling, McMillan, London

More at McMillan

Met Jan Pen in debat

Steven Brakman, Harry Garretsen, en Simon Kuipers (1993),Met Jan Pen in debat, Amsterdam University Press, Amsterdam


Steven Brakman, Catrinus Jepma, (1995), Protectionisme, Financiele & Monetaire Studies, Nr. 2-1995-1996, Wolters-Noordhoff.

PhD: International Trade Modeling; Decomposition Analyses

Steven Brakman, (1991), International Trade Modeling; Decomposition Analyses, Wolters-Noordhoff, Groningen, ISBN 90-01-15810-2.