In the literature on exports and investment, most productive firms are seen to invest abroad. In the Helpman et al. (2004) model, costs of transportation play a critical role in the decision about whether to serve foreign customers by exporting, or by producing abroad. We consider the case of...

Traditional explanations for indirect trade carried out through an entrepôt have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepôts may facilitate tariff...

This paper undertakes a cross-country analysis of productivity growth at both the aggregate and sectoral level. It finds that Asia''s remarkable output growth over the past 40 years reflected both high investment, and rapid productivity increases. These factors were in turn supported by the...

The Selected Issues paper provides an overview of trends, performance export growth, value added, and employment, account of the structure and evolution of Lesotho's textiles during the decade through 2002, and discusses future prospects and key issues. It analyzes the implications of the...

This study examines the challenges and issues facing policymakers in highly dollarized economies. Focusing on Cambodia, which achieved almost complete dollarization during 1991-95, the authors review recent developments in the literature on dollarization and examine the costs and benefits of...

We review the literature on Dutch disease, and document that shocks that trigger foreign exchange inflows (such as natural resource booms, surges in foreign aid, remittances, or capital inflows) appreciate the real exchange rate, generate factor reallocation, and reduce manufacturing output and...

This Selected Issues Paper examines the main channels of transmission of the global financial crisis on Togo’s economy. This paper assesses its impact, focusing on 2009 and considering country-specific factors that may aggravate, mitigate, or offset its effects. The decrease in global...

One of the most significant recent developments in world trade has been the entry of China into the World Trade Organization (WTO). This paper examines the implications of China''s WTO accession for India''s trade, using both econometrics and computable general equilibrium (CGE) models. The...