-product firms live forever, and the large firms invest in innovation in order to enlarge their product spans. All firms export. I …

We study unanticipated tariffs on imports of intermediate goods in a setting with firm-to-firm supply relationships … free trade. Once they are in place, the home government surprises with an input tariff. This can lead to renegotiation with … deterioration in the terms of trade. The welfare implications of a tariff are ambiguous in this second-best setting, but plausible …

fluctuation of the growth rate of trade balance is derived. These are the novel features of our model. The export price equation … Japanese and US firms in their markets. The duopoly model is used to determine export prices and volumes in response to the … and export volume equation are estimated for several Asian countries for the sample period of 1981 to 1996. Results are …

It has been a well-known puzzle why the yen has not been used more in trade invoicing among Japanese exporters. Despite … Japanese firms grew; and (2) the production/trade structure of Japanese electronics companies in Asia in which final products …

aggregate export and FDI sales relative to the domestic and foreign market sizes. In particular, it is shown that firm level … heterogeneity is an important determinant of relative export and FDI flows. We use the model to derive testable empirical … predictions on the relative aggregate export and FDI sales in a given country for a given sector based both on relative costs and …

economies that export goods to the U.S., Japan, and neighboring countries. The optimality of the exchange rate regime is defined … as minimizing the fluctuation of trade balances, in the environment where the yen-dollar exchange rate fluctuates. Since …

unions to estimate the effect of currency unions on trade using (then-) conventional gravity models. In this paper, we use a … variety of empirical gravity models to estimate the currency union effect on trade and exports, using recent data which … a smaller trade effect than other currency unions; it has a mildly stimulating effect at best. Third and most …