What is a countr y’s optimal choice of an exchange rate regime? One avenue which has gained prominence is the Optimum Currency Area criteria of pattems of shocks which suggests that a flexible exchange rate may be less costly for regions who face asymmetric shocks, since they are forced to...

The paper consider the Turkey-EU customs union (CU). After reviewing briefly the developments in Turkey-EU relations the paper studies the structure of protection that prevailed prior to the formation of the CU as well as struc - ture of protection that will prevail when all of the adjustments...

The past two decades have witnessed economic growth differentials among countries in East Asia and Latin America. In this paper we argue that the degree of openness due to government policies in both areas may be an important factor yielding this result. We construct a simple model to highlight...

This paper investigates the influence of immigration into Greece on the volumes of Greeces bilateral trade using a gravity modelling approach. An augmented gravity model is estimated using a panel data set for the period 1981-1991. The results show that immigration had a positive impact on the...

The paper purports to examine the implications of a free education policy and trade liberalization on the child and adult labour markets in the set-up of a Harris-Todaro type general equilibrium model. It has been found that a hike in the education subsidy or an inflow of foreign capital may...

Using a centre-two periphery new economic geography model we study the location and real wage effects of the EU’s Eastern enlargement on current and future EU member countries under pure trade integration and with migration of skilled labour. The quality of final and intermediate products...

The paper examines Greek external trade following accession to the EU, placing emphasis on the 1990s. Using original disaggregated data we find: (i) Mutually offsetting, stable trade creation/trade diversion in imports from EU and third countries respectively. (ii) No EU effect on exports. These...

In a production structure reasonable for a developing economy this note shows that there may arise a conflict between the worldwide liberalized trade policies in agriculture, which raise the price of the economy’s primary exportable commodity, and the inflow of foreign capital into the...

This paper uses a three-country duopoly model to examine the effects of lowered trade barriers when a new entrant joins a trading bloc. There are two firms - a small-country firm and a large-country firm within the bloc - and three markets -two within and one (new entrant) outside the bloc. The...

It is well known that nations potentially generate mutual gains from exchange following reductions in tariffs on commodities potentially traded between them. It might appear to follow that successive enlargements of a market by reductions in tariffs for potentially entering members would lead to...