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theory-based measures for production networks from a multi-sector gravity model with inter-sectoral linkages to analyze the …, calibrate it to the year 2000 using the World Input-Output Database, and perform a counterfactual analysis of China’s WTO … and for about 7% of the decline in this figure on the world level as observed between 2000 and 2007. Furthermore, our …
Persistent link: https://www.econbiz.de/10011517926
Geography, economic size, or common history, help predicting signed regional trade agreements (RTAs). However, not all signed RTAs are "natural" according to economic determinants. En-dogeneity and general equilibrium effects of RTAS are the two mechanisms addressed in this paper. We estimate...
Persistent link: https://www.econbiz.de/10011822134
We propose and apply methods to quantify the impact of national institutions on international trade and development. We are able to identify the direct impact of country-specific institutions on international trade within the structural gravity framework. Our approach naturally addresses the...
Persistent link: https://www.econbiz.de/10011800710
This paper examines the pattern of foreign direct investment (FDI) in producer services. We develop a model of FDI in these services and test its predictions using panel data on U.S.FDI in 25 host countries from 1976 to 1995. We find evidence that, in addition to governmental and cultural...
Persistent link: https://www.econbiz.de/10011400886
We examine multinationals optimal entry modes into foreign markets as a function of market size, FDI fixed costs, tariffs and transport costs. Our results highlight why large countries are more likely to attract acquisition investment, while intermediate-sized countries may be served...
Persistent link: https://www.econbiz.de/10011402453
A new line of theoretical and empirical literature emphasizes the pivotal role of fair institutions for growth. We present a model, a laboratory experiment, and a simple cross-country regression supporting this view. We model an economy with an unequal distribution of property rights, in which...
Persistent link: https://www.econbiz.de/10011404315
We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity differences across monopolistically competitive firms are endogenous and depend on investment decisions at the entry stage. By increasing entry costs, financial frictions lower the...
Persistent link: https://www.econbiz.de/10011447515
Persistent link: https://www.econbiz.de/10001450712
are analysed and insights from the theory of industrial organisation are given. Governments intervene in the market for …
Persistent link: https://www.econbiz.de/10002734112
country and the (developed) rest of the world. Despite labour being the only factor of production in this model, tariffs (in …
Persistent link: https://www.econbiz.de/10002757774