We study the effects of policy reforms in the South on the decisions of intrafirm and arm’slength production transfers by Northern firms. We show theoretically that relaxing ownershipcontrols and improving contract enforcement can induce multinational companies to expandproduct varieties to...

This paper extends a well-established vertical product differentiation model toan international duopoly with two segmented countries, where firms compete inquality and price. The framework is used to analyse governments’ incentives forunilateral minimum standard-setting as well as the scope...

Our paper deals with econometric developments for the estimation of the gravity model whichlead to convergent parameter estimates even when a correlation exists between theexplanatory variables and the specific unobservable characteristics of each unit. Weimplement panel data econometric...