Introduction

This volume brings together a series of selected papers, all previously published elsewhere, that apply general equilibrium theory in order to obtain policy relevant insights on topical issues of international trade and migration. Part I focuses on European integration, applying dynamic numerical general equilibrium methods to quantify the effects of geographic extension of the European Union, focusing in particular on the effects of eastern enlargement of the EU on incumbent western member countries. Part II asks whether the history of world trade after World War II suggests that WTO membership has promoted bilateral trade volumes, as perhaps expected. Part III addresses the distributional effects of offshoring using suitably modified models of comparative advantage. Part IV focuses on immigration, offering a rigorous theoretical analysis of the so-called immigration surplus as well as an econometric estimation of the gains and pain that Germany may have experienced by initially restricting immigration from new EU member countries after the EU's eastern enlargement in 2004. In this introductory chapter, these parts are put into a broader perspective against the backdrop of economic globalization…