A dynamic profit maximization model with adjustment costs of capital is implemented to study US outward processing trade in apparel and to examine the effects of preferential trade policies in the long and short runs. The model is used to determine the role of foreign investment and to simulate...

Preferential agricultural trade under the Caribbean Basin Initiative has been beneficial to participating countries, particularly for differentiated goods. Goods that have not performed well were either subject to policy changes, eroding preferences and deteriorating market trends or structural...