We build a trade model with two countries located in different time zones, a monopolistically competitive sector in which production requires differentiated goods produced using day and night labor, and shift working disutility. Consumers choose between working at a day shift or a night shift...

The relationship between trade liberalization and inequality has received considerable attention in recent years. The primary purpose of this paper is to present new results on the sources of wage inequalities in manufacturing taking into account South-South (S-S) trade. Globalization not only...

Although firms are dispersed across space and may face radically different production conditions, this dimension of firm heterogeneity is often overlooked. Differences between factor markets, especially for labor, are stark. To pursue this line of inquiry, we model firm hiring across local labor...

At the beginning of 2001, the experts of the Goldman Sachs Research Group launched a new acronym in the field of world economy: BRIC. This abbreviation represents the group of four countries: Brazil, Russia, India and China and has generated a long list of quantitative, as well as qualitative...

General Agreement on Trade in Services (GATS), one of the legal documents in the Appendix to the agreement that had established WTO, is the first multi-lateral agreement that defines and delineates the basic concepts, rules and principals of international trade in services. This paper discusses...

The literature concerning the effect of tariffs on the inter-industry wage premium has not addressed the role of total factor productivity (TFP) in determining both the wage premium and tariffs. This omission invalidates the use of the pre-reform tariff level as an instrument for the change in...

Reviewing the experience of developing countries in recent years as well as successful industrialization in developed countries in previous centuries, the author explains that trade liberalization is necessary for industrialization if: it is regarded as a part and parcel of a dynamic and...

Recent cross-country research shows that there is a causal relationship between trade liberalization and quality of institutions. The literature on cross-country studies has been criticized because differences in legal systems and other institutions across countries are difficult to control for....

Vietnam’s rural economy has substantially diversified over the past two decades. The rural nonfarm sector has grown rapidly and became an important source of employment and income for rural households. This growing nonfarm employment was associated with radical changes in the trade policy...

Conventional economic theory advocates trade liberalization, and ultimately free trade because its benefits are said to outweigh its costs. This paper states the arguments for and against the liberalization of trade and then analyzes the case of Pakistan's trade liberalization. Some...