Under general conditions, it has been proved that free trade improves the welfare of open economies. However, the conditions to attain the free trade equilibrium are non trivial: when the productive process is planned, industries do not know the price that will prevail, while the production is...

We derive several cases of 'comparative advantage in nothing', which can be relevant for East Germany. The simplest case with little relevance is the HO assumption of identical technologies across regions implanted into the Ricardian model. The second is the case with full employment wages...

This chapter is an extensive review of the existing literature on international migration of labour and its close interactions with international trade in goods and services. In addition, we provide a brief model to show that emigration of labour from a developing country has strong implications...

A government seeks to minimise the maximum expected utility of migrants and smugglers, but has to do this under constraints. It is argued that a vote maximising government should choose policies based on the relative weight of the introduced lobby utility function, which acts as a constraint....

State border corruption is still a problem for Belarus, Ukraine and Moldova. In a theoretical model, it is shown how a border guard authority should optimally allocate budgetary resources to oblasts in presence of corruption, so as to minimise the general average number of illegal migrants.

In the article, a model of oligopolistic (duopolistic) competition between two people smuggling syndicates is developed. I consider the Cournot and Stackelberg cases. First, the deterministic case is considered, where I show the conditions of profit maximisation for the syndicates. Then, a model...

Economic integration theory suggests that each member benefits from establishing a customs union; because the country that has relatively lower income will grow faster than the others, income and growth rates of all member countries will be equalised in the long-run. However, endogenous growth...

Team production is introduced into a two-sector Ricardian comparative advantage model in order to investigate its role in shifting high-skilled agents from a sector in which they have comparative advantage to a sector in which they have comparative disadvantage especially focusing on a case...

In Mongolia, the mining sector has been upgraded and developed very sharply last few years and some international experts stated that this growth will be hold up related to the strategic deposits such as Oyu tolgoi, Tavan tolgoi. It shows that Mongolia will become more relative to the foreign...

Economic activities becoming more knowledge oriented. With liberalization of the global trade global competition escalated. In this context global competition acquired a shape among the knowledge goods. Societies which produce and use knowledge goods in their economic activities holding an...