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We generalize the Antràs and Helpman (2004) model of the international organization of production in order to accommodate varying degrees of contractual frictions. In particular, we allow the degree of contractibility to vary across inputs and countries. A continuum of firms with heterogeneous...
Persistent link: https://www.econbiz.de/10005792310
Persistent link: https://www.econbiz.de/10012649658
-driven and the decision to serve foreign countries via exports or FDI depends on a proximity-concentration trade-off. We … characterize the joint patterns of trade and FDI when countries differ in income distribution and size and show that FDI is more …
Persistent link: https://www.econbiz.de/10009367424
We examine the extent to which developing countries that do little, if any, research and development themselves benefit from R&D that is performed in the industrial countries. By trading with an industrial country that has large `stocks of knowledge' from its cumulative R&D activities, a...
Persistent link: https://www.econbiz.de/10005667027
This Paper builds a multi-country, multi-sector general equilibrium model that explains the decision of heterogeneous firms to serve foreign markets either through exports or local subsidiary sales (FDI). These modes of market access involve different relative costs, some of which are sunk while...
Persistent link: https://www.econbiz.de/10005791827
labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and …
Persistent link: https://www.econbiz.de/10008468664
We study a two-country two-sector model of international trade in which one sector produces homogeneous products while … vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in … shaping welfare, trade flows, productivity, and unemployment. We show that both countries gain from trade but that the …
Persistent link: https://www.econbiz.de/10008477175
We review the literature on the links between technology and international trade. The older literature assumed … exogenous technologies and focused on their effects on the structure of foreign trade and on welfare. Recently much of the … effort has been on explaining technological change. As a result, we also describe the effects of foreign trade on …
Persistent link: https://www.econbiz.de/10005067514
This Economica Coase Lecture reviews research that has revolutionized the field of international trade and foreign …
Persistent link: https://www.econbiz.de/10011083409
During the last two decades new research has greatly advanced our understanding of the structure of world trade. This … foreign trade the discussion is in two parts. One part examines the links between factor endowments and trade flows. New … across countries. A second part examines determinants of the volume of trade, the share of intra-industry trade and evidence …
Persistent link: https://www.econbiz.de/10005661848