The Gains from Trade and the Gains From Aid is a record of the progress made by Murray C. Kemp and his co-workers in addressing normative trade theory over the past 35 years. They have responded to a question Adam Smith posed more than 200 years ago: "When does a country benefit from free trade?" The Gains from Trade and the Gains From Aid produces saome satisfyingly general answers.

Kemp focuses on the normative side of trade theory with an emphasis on the Pareto optimality. The book discusses trade under perfect competition, restricted trade under perfect competition, trade under imperfect competition and other distortions, compensation and international trade. This is an invaluable guide for those interested in the social consequences of international trade and aid.