This paper presents a pairwise matching model with two-sided information asymmetry to analyse the impact of information costs on endogenous network building and matching by information intermedairies. The framework innovates by examining the role of information costs on incentives for trade...

We present a new model of multi-product firms (MPFs) and flexible manufacturing and explore its implications in partial and general equilibrium. International trade integration affects the scale and scope of MPFs through a competition effect and a demand effect. We demonstrate how MPFs adjust in...

The literature on carbon leakage has not yet benefitted from many of the insights of the ‘New Economic Geography’ (NEG).  Most studies assume both an absence of agglomeration forces and that factors do not move inter-regionally.  This paper develops a 2-region NEG model with...

Theoretical models of growth and trade suggest that patterns of international specialisation are inherently dynamic and evolve endogenously over time. Initial comparative advantages are either reinforced or gradually unwound with the passage of time. This paper put forward an empirical framework...

Gravity equations in trade imply that trade flows are proportional to the size of a country and inversely proportional to distance.  This paper develops an analogy of these observations with gravity in physics, and provides geometric intuition for a large class of mathematical processes in two...

This paper extends a well-established vertical product differentiation model to an international duopoly with two segmented countries, where firms compete in quality and price. The framework is used to analyse governments` incentives for unilateral minimum standard-setting as well as the scope...