In this paper we estimate the trade effects of the euro adoption in countries that joined the European Union in 2004. We employ a generalized gravity model that controls for an extended set of trade theory and policy variables. Trade theory variables include both the country size and factor...

In the paper we develop a monopolistically competitive general equilibrium model of horizontally-integrated multinational enterprise (MNE) with heterogeneous plants. We demonstrate that smaller productivity differences between domestic and foreign plants increase the level of multinational...

The paper aims at explaining the regional wage determinants in Poland using the New Economic Geography approach. We test the hypothesis that regional wages are positively related to the regional economic potential, controlling for individual worker, firm, industry and regional characteristics....