We study how competition and corporate governance may explain investment decisions of Mexican manufacturing firms. We develop the study with indexes of market concentration and agency costs and OLS regressions. The analysis uses longitudinal census data. Our results suggest that investment is...

Regional free trade zones have been unexpectedly successful in the last decade. Since 1980 the European Community enlarged significantly its membership and its scope. It now includes southern European countries, and market-integrating features allowing goods, people, services and capital to flow...

Regional free trade zones have been unexpectedly successful in the last decade. Since 1980 the European Community enlarged significantly its membership and its scope. It now includes southern European countries, and market-integrating features allowing goods, people, services and capital to flow...

One may say that the European Union is a success story: it is growing and in 2004 it witnessed the most significant enlargement in its history up to now – 10 new countries have become members;two other new countries – Romania and Bulgaria – are ready to join the Union. Beyond these...

Since its inception, the European Union’s Common Agricultural Policy (CAP) has been discussed controversely. Data from the OECD and the World Bank show that the protectionist effects of the CAP between the 1960s and the 1980s were larger than those of its national predecessors. Moreover, there...

Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This paper presents a new and simple heterogeneous-firms specification. We develop a symmetric...