We develop a simple two-sector dynamic model to examine the effects of international trade in the presence of pollution …-created cross- sectoral production externalities. We assume that the production of 'Smokestack' manufactures generates pollution … is non-convex. Pollution provides a motive for trade, since trade can spatially separate incompatible industries. Two …

The magnitude and the direction of net international capital flows does not fit neo-classical models. The 50 U ….S. states comprise an integrated capital market with very low barriers to capital flows, which makes them an ideal testing … capital and find that capital flows between the U.S. states are consistent with the model. Therefore, the small size and quot …

China's environmental regulators have sought to reduce the Yangtze River's water pollution. We document that this …, the regulation has focused on reducing one dimension of water pollution called chemical oxygen demand (COD). Thus, local …

aggregate uncertainty. Gains from more efficient capital allocation and gains from risk sharing are accounted for simultaneously … quantitatively small, even for riskier and capital scarce emerging economies. These countries import capital for efficiency reasons … before exporting it for self-insurance, leading to capital ows and growth reversals along the transition. This opens the door …

We document the recent phenomenon of quot;uphillquot; flows of capital from nonindustrial to industrial countries and … analyze whether this pattern of capital flows has hurt growth in nonindustrial economies that export capital. Surprisingly, we …, implying that a reduced reliance on foreign capital is associated with higher growth. This result is weaker when we use panel …

interest rate is an example of the theory of the second best: although high interest rates introduce an inefficiency wedge into …

In this paper I analyze whether restrictions to capital mobility reduce vulnerability to external shocks. More … specifically, I ask if countries that restrict the free flow of international capital have a lower probability of experiencing a … large contraction in net capital flows. I use three new indexes on the degree of international financial integration and a …

International capital flows from rich to poor countries can be regarded as either too small (the Lucas paradox in a one … trade in goods does not imply equal returns to capital across countries. In addition, rich patterns of gross capital flows … simultaneously experience an outflow of financial capital but an inflow of FDI, resulting in a small net flow. In comparison, a …

I study a small open economy in which elections affect and are affected by capital inflows. Two candidates, one …. A pro labor victory results in a quot;sudden stopquot; in investment and capital flows, reflecting a time inconsistency …