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We analyze how trade openness matters for interstate conflict over productive resources. Our analysis features a terms-of-trade channel that makes security policies trade-regime dependent. Specifically, trade between two adversaries reduces each one’s incentive to arm given the opponent’s...
Persistent link: https://www.econbiz.de/10012892081
For a long time, China's impressive growth performance has been driven by investment and high productivity gains. Based … sustainability of China's investment- and export-driven growth model. It is shown that since the turn of the millennium buoyant …
Persistent link: https://www.econbiz.de/10012866404
Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs specification used. This paper shows that the specification...
Persistent link: https://www.econbiz.de/10013316892
We consider a dynamic setting in which two sovereign states with overlapping ownership claims on a resource/asset first arm and then choose whether to resolve their dispute violently through war or peacefully through settlement. Both approaches depend on the states’ military capacities, but...
Persistent link: https://www.econbiz.de/10014243081
investment in an international infrastructure capital, the stock of which accumulates over time. Depending on the trade costs and … consideration, the governments carry out a dynamic game of public investment. We show that the dynamic equilibrium of the policy …
Persistent link: https://www.econbiz.de/10013314918
that anticipate the actual tax base incorrectly. I analyze the effects of stochastic taxation on investment behavior in a … the effects of both tax base and tax rate uncertainty, the investment's tax payment is modelled as a stochastic process …. Increased tax uncertainty has an ambiguous impact on investment timing. The view that tax uncertainty depresses real investment …
Persistent link: https://www.econbiz.de/10013316889
between countries generates positive investment spillover, intra-firm production linkages predict negative spillover. Using … subsidiary-level data and exogenous corporate tax hikes, we find that local business units cut investment by 0.4% for a 1 …
Persistent link: https://www.econbiz.de/10014261020
study a reform in Germany that abruptly abolished this mandate for certain firms incorporated after August 1994 but locked … reduces owners' capital investment – we find that granting formal control rights to workers raises capital formation. The … relations whereby shared governance raises capital by permitting workers to bargain over investment or by institutionalizing …
Persistent link: https://www.econbiz.de/10012857903
We use anonymized data from Facebook to construct a new measure of the pairwise social connectedness between 180 countries and 332 European regions. We find that two countries trade more with each other when they are more socially connected and when they share social connections with a similar...
Persistent link: https://www.econbiz.de/10012834994
Is the variation in bilateral trade flows across countries primarily due to differences in the number of exporting firms (the extensive margin) or in the average size of an exporter (the intensive margin)? And how does this affect the estimation and quantitative implications of the Melitz (2003)...
Persistent link: https://www.econbiz.de/10012890632