During the last two decades we simultaneously observed an important increase in investment abroad and a rush towards free-trade worldwide. This paper argues that the former may (partially) help explain the latter. In a model of endogenous determination of trade protection through lobbying, where...

In a model of vertical product differentiation, duopolistic firms face qualitydependent costs and compete in quality and price in two segmented markets. Minimum quality standards, set uniformly or according to the principle of Mutual Recognition, can be used to increase welfare. The analysis...

Dynamic patterns of trade imbalance and asset-debt position are analyzed employing a model of two countries, one good, two primary inputs, and identi - cal technologies and preferences with investment adjustment costs. The coun - tries are assumed to have different initial per capita physical...

This paper examines international trade and foreign direct investment as channels for technology diffusion among industrialized countries. We find strong empirical support for capital goods trade as a channel for international technology diffusion and some evidence that multinational enterprises...

Non-transparency is a term given in this paper to a set of government policies that increase the risk and uncertainty faced by economic actors (foreign investors). The higher in risk and uncertainty stem from the presence of bribery and corruption, unstable economic policies, weak and poorly...

Technology diffusion across industrial countries has been the subject of considerable research. During the last decade economists have measured extensively the extent to which productivity gains are transmitted across countries in the North. However, research on technology diffusion to...

In order to answer the pertinent question why developing countries are showing penchant for foreign capital over the last two decades in spite of its detrimental effects as revealed from the conventional two-sector mobile capital version of Harris–Todaro (HT) model in the presence of...

This paper examines the long consequences of capital movements in overlapping generation growth model with bequest motive. Whereas there is only terms of trade effect of free capital movements across countries in the traditional of trade effect, and golden rule effect. In the capital-importing...

In this paper we investigate how strategic aspects influence the choice between exporting and servicing foreign markets by setting up a plant in the foreign country. We show that tariffs on imports in conjunction with the size of the set up costs incurred while setting up plants and the size of...

This paper is exploring the impact on the two proximate economies, Korea and China, of China’s accession to the World Trade Organization. We try to figure out how the aggregate effects, export performance, domestic production, and flows of foreign direct investments can be affected by this...