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's geographic variation in the suitability for cotton production combined with a surge in the world market price of cotton in 2010 … command political capital to coerce workers. The expansion in land attributed to cotton production led to increases in labor … demand and wages for cotton pickers; however, the price hike benefits only workers on entrepreneurial private farms, whereas …
Persistent link: https://www.econbiz.de/10012987397
This article presents a Ricardian model of trade with learning-by-doing to study the effect of barriers to trade in products with low growth potential on the long-run economic growth. The model shows that, when elasticity of demand for the product with a lower learning potential is lower than...
Persistent link: https://www.econbiz.de/10013059480
This research explores the origins of the distribution of time preference across regions. It advances the hypothesis, and establishes empirically that geographical variations in the natural return to agricultural investment have had a persistent effect on the distribution of time preference...
Persistent link: https://www.econbiz.de/10013026692
The cost of complying with a sanitary standard is certain. However, such regulatory measure is a source of uncertainty for exporting firms in relation to border rejections. Shipments may fail to pass inspections and may be refused entry into the importing country. We examine how the risk of...
Persistent link: https://www.econbiz.de/10012993696
Biotic factors such as pests create biodiversity effects that increase production risks and decrease land productivity when agriculture becomes more specialized. We show in a Ricardian two-country trade setup that production specialization is incomplete under free trade because of the decrease...
Persistent link: https://www.econbiz.de/10013315542
with globalization may be twin to each other. We provide statistical evidence of this so far neglected trade-off for a …
Persistent link: https://www.econbiz.de/10013137867
Convex vacancy creation costs shape firms' responses to trade liberalization. They induce capacity constraints by increasing firms' cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...
Persistent link: https://www.econbiz.de/10013119834
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10013120903
Using a two-factor (labor and capital), two-good (shift-working and non shiftworking commodities) model with two countries (Home and Foreign) which are located in different time zones, we highlight the impact of trade in labor services (via communication networks) on the comparative advantage of...
Persistent link: https://www.econbiz.de/10013121206
We develop a general-equilibrium model to capture key features of the retailing and of the manufacturing industry in order to understand how these two industries interact and how labor is allocated between them. We show that the observed shift in employment from manufacturing to retailing, the...
Persistent link: https://www.econbiz.de/10013122636