We consider social efficiency of firm-entry in the presence of foreign competition. If the labour markets are competitive, entry is insufficient for the domestic country if the transportation cost is low and the marginal costs of the domestic firms are sufficiently higher than the marginal cost...

In an international Cournot duopoly, we determine the optimal contract for a brand name collaboration where the contract consists of fixed-fee and output royalty. We show that the firms always have the incentive for brand name collaboration. However, whether the optimal contract will have...

In contrast to the existing partial equilibrium literature considering the effects of a trade cost reduction on unionised wage under a given market structure, we show the effects by determining the domestic market structure endogenously. A lower trade cost reduces the number of active domestic...

While the “proximity-concentration” theory suggests a positive relationship between trade cost and foreign direct investment (FDI), there is ample evidence showing a negative relationship between them. We show that the possibility of exporting back to the home country from a host country,...

Lucas [Lucas, Robert, E., Jr. (1976), "Econometric Policy Evaluation: A Critique", Carnegie-Rochester Conference Series on Public Policy, 1, pp 19-46] had argued that interventionist macroeconomics policies may fail because policies themselves affect the optimal behaviour of private agents and...

We construct a general equilibrium model with a protected intermediate sector and analyze the effectiveness of trade reform for a small open economy where bureaucratic corruption arises because of trade protection. Intermediaries are employed by the producers in order to avoid paying the import...

We propose a two-country growth model of intermediate business-services trade that captures the role of time zone differences. It is shown that a time-saving improvement in intermediate business-services trade involving production in different time zones can have a permanent impact on productivity.

We construct a trade theoretic model of skill formation with skill as a produced intermediate input. Capital is required for production as well as for education which transforms unskilled labor into skilled. We use this model to reflect analytically on India's rising requirement of skilled...