Book reviews I Journal of International Economics 38 (1995) 179-197 193 nonstrategic world. That is, when the rest of the world responds to the actions of the member countries, it is not necessarily possible for the member countries to replicate the pre-existing external pattern of trade, as is required by Kemp/Wan. It is, therefore, not necessarily possible to achieve a (world) welfare-improving outcome. Given the thorough impact of the Kemp/Wan result, one cannot help but wonder how the tone of this volume might be different in light of the Richardson qualification. In terms of an overall evaluation, this volume is a substantial contribution to the literature. The level of the material is, however, somewhat schizo- phrenic with respect to the audience it might serve. Analyses and discussions such as those presented by Bhagwati and Irwin are certainly accessible to anyone interested in the issue, while the chapters by Krugman and de Melo et al. are not for the economically uneducated. A striking feature of this book is the lack of thorough compelling empirical evidence - Saxonhouse not withstanding - as to the effects of past efforts toward regional integra- tion. While the pages are spotted with statistics, the level of empirical analysis is unfortunately shallow. Although the content may reflect the difficulty associated with performing rigorous analysis, I am convinced that more substantial efforts in this direction would have enhanced the value of the volume. This comment notwithstanding, I believe that the volume makes a valuable contribution to the understanding of RI from an historical perspective and that future RI schemes can surely benefit therefrom. I certainly learned a great deal from reading this volume and am confident that others interested in the field will as well. Jon D. Haveman Purdue University Kenneth Froot, ed., Foreign Direct Investment (University of Chicago Press, Chicago, 1993) pp. ix + 272. This book is a timely NBER conference volume on foreign direct investment (fdi). In the NBER tradition, various authors report in this book interesting, important, and carefully interpreted economic facts. The materi- al reported in the chapters and the summaries of the conference discussions are informative and stimulating. Therefore, the book is a useful reference for scholars ranging from those with a casual curiosity about fdi to those with a keen research interest in the subject. It is more fruitful to read and absorb the chapters together than to handle them one at a time. Although the chapters are written by scholars using a variety of research techniques and focusing on different fdi issues, the reported empirical observations, the analyses and interpretations of them,