This paper examines the impact of market integration in the presence of a labor union. Effects on wages, employment, product price, firm profits, and union rents are analyzed. Both the theoretical model as well as numerical sim - ulations show the importance of factors such as the product demand...

The influence of data aggregation on applied trade theory may not be generally appreciated. Aggregation can have a direct impact on the direction of trade, factor intensity, factor abundance, factor substitution, product differentiation, and intra-industry trade. This paper develops some...

Tariff literature on third-degree price discrimination remains only lightly explored. The purpose of the paper is to investigate whether there exist optimum tariffs in the presence of different demand elasticities. We explore (i) the case of optimum uniform ad valorem tariff, and (ii) the case...

The paper studies the effects of regional integration on the incentives of mem - bers and non-members to undertake multilateral trade liberalization. Using a three- country political economy model with imperfect competion, it shows how regionalism can undermine support for multilateralism....

A model of strategic trade policy under integrated markets is presented and optimal trade policies are derived under assumptions of both complete and incomplete information. With the assumption of complete information it is shown that the optimal policy is an import tariff (export subsidy) when...

This paper considers a dynamic model of strategic export subsidy/tax game in which governments have an option of choosing open-loop or closed-loop trade policies. In a simple two-period Bertrand duopoly model, it is shown that all subgame-perfect equilibria are asymmetric even when the...

We study the effect of anti-dumping laws in a differentiated products quanti - ty-setting oligopoly. Dumping may or may not occur in the model and may or may not be reciprocal. We show that the effect of adopting an anti-dumping policy on the welfare of the importing country is ambiguous. It can...

Traditional push-and-pull factors offered partial explanations to the size of large urban areas in the third world. Moreover, the growing literature in eco - nomic geography identifies an additional factor exacerbating the phenomenon, namely trade costs. The present study tests econometrically...

A large share of world trade, especially among the OECD countries, is twoway trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products with - in industries, whereas they import others. We examine this issue,...

We examine home country tariff and subsidy policies when a domestic firm uses an imported key input to produce its low-quality exports, and foreign firms produce high-quality exports as well as the key input. We show that the deci - sions of foreign vertically integrated firms on strategy...