The Economics of Barter and
Countertrade
'Countertrade is a more
common phenomenon than many people realise, especially in East-West and North-South trade.
Yet, superficially, countertrade is inefficient in comparison to monetary trade. The
paradox of how an apparently inefficient trading mechanism can become so dominant
attracted increasing theoretical interest in the 1970s and 1980s. The editors of this
volume were amongst the intellectual leaders in the field. The literature on countertrade
is quite diffuse, and the editors have performed a major service by bringing together the
important contribution in a single volume. This will be an important source of reference
for many years to come.'
- Mark Casson, University of
Reading, UK
'Mirus and Yeung have been
pioneers in showing that countertrade is economically efficient. Here, a surprisingly
large literature supports their insight. The papers use aspects of transaction cost
economics to examine the efficiency aspects of countertrade.'
- Alan M. Rugman, Indiana
University
This authoritative collection
presents the most important published articles on barter and countertrade from early
skepticism to the recent sophisticated theoretical models and empirical evidence.
The papers selected focus
upon the policy and managerial implications of barter and countertrade and explain the
reasoning behind these arrangements in an environment characterized by transaction
difficulties. They demonstrate that appropriately designed transactional governance is
crucial for the efficiency of successful trading relationships between different parties.
The Economics of Barter
and Countertrade is a timely collection due to the resurgence of barter and
countertrade following the Russian and Asian financial crises. It is an essential
reference source for those with an interest in trade and international economic relations.
About the Author
Rolf Mirus, Professor of
International Business, University of Alberta, Canada
Bernard Yeung, Abraham
Krasnoff Professor in Global Business and Professor of Economics, New York University and
Area Research Director, William Davidson Institute, University of Michigan
Contents
PART I COUNTERTRADE: FORMS
AND CHALLENGE OF THE CONVENTIONAL WISDOM
PART II COUNTERTRADE AS
SOLUTION TO TRANSACTIONAL DIFFICULTIES: EARLY ANALYTICAL LITERATURE
PART III THE LITERATURE IN
THE NINETIES: DOUBLE MORAL HAZARD, HOSTAGE EXCHANGE, AND QUANTITY STIPULATION
PART IV RISK SHARING
PART V PRICE DISCRIMINATION
PART VI POLICY IMPLICATIONS
PART VII MANAGERIAL ASPECTS
PART VIII DOMESTIC BARTER IN THE ABSENCE OF CREDIBLE HAT MONEY
PART IX CONCLUSION
387 pages