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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
will be net exporters in scale-intensive industries. The hypotheses are empirically tested by studying the trade of each …
Persistent link: https://www.econbiz.de/10005792049
We investigate theoretically and empirically the competitive effects of increased trade on prices, productivity and … bias of monetary policy. Our results suggest that increased trade could account for as much as a quarter of European …
Persistent link: https://www.econbiz.de/10005667140
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
We present a North-South model of international trade in which differentiated products are developed in the North … relative prevalence of these organizational forms. The analysis sheds light on the structure of foreign trade within and across …
Persistent link: https://www.econbiz.de/10005788904
This paper estimates the effects of trade liberalization on plant productivity. In contrast to previous studies, we …
Persistent link: https://www.econbiz.de/10005791433
This paper analyses the consequences for the standard import allocation models of assuming monopolistic competition on the supply side. Together with relative prices, this requires additional variables to capture product differentiation effects. To this end, we derive a composite price index...
Persistent link: https://www.econbiz.de/10005791569
choices in a Krugman cum Melitz and Ottaviano model of international trade. We show that the toughness of competition in a … trade adjustments: the monitoring margin and the organizational margin. International trade may or may not lead to an … increase in aggregate productivity of an industry depending on which of these margins dominate. Trade may trigger firms to opt …
Persistent link: https://www.econbiz.de/10005791677
This paper reviews the new economic geography literature, which accounts for the uneven distribution of economic activity across space in terms of a combination of love of variety preferences, increasing returns to scale and transport costs. After outlining the canonical core and periphery...
Persistent link: https://www.econbiz.de/10005791744
Domestic products have a disproportionately high market share on many goods markets. We examine the contribution of preferences to such "home bias", using detailed data on wine sales in New Hampshire (weekly sales by brand by store for one year). In counterfactual simulations, where we use the...
Persistent link: https://www.econbiz.de/10008553069