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In this essay, we argue that key assumptions in international macroeconomic theory, though useful for understanding the economic relationships among developed countries, have been pushed beyond their competence to include relationships between developed economies and emerging markets. The...
Persistent link: https://www.econbiz.de/10012465456
Countries differ greatly in R&D spending, and these differences are particularly striking when comparing developed with developing countries. The paper examines the extent to which the benefits of R&D are concentrated in the investing countries. It is argued that significant benefits spill over...
Persistent link: https://www.econbiz.de/10012472713
A country's suitability for entry into a currency union depends on a number of economic conditions. These include, inter alia, the intensity of trade with other potential members of the currency union, and the extent to which domestic business cycles are correlated with those of the other...
Persistent link: https://www.econbiz.de/10012473138
We show that international trade in goods is the main determinant of international equity portfolios and offers a compelling -- theoretically and empirically -- resolution of the portfolio home bias puzzle. The model implies that investors can achieve full international risk diversification if...
Persistent link: https://www.econbiz.de/10012465027
We construct a model of the product cycle featuring endogenous innovation and endogenous technology transfer. Competitive entrepreneurs in the North expend resources to bring out new products whenever expected present discounted value of future oligopoly profits exceeds current product...
Persistent link: https://www.econbiz.de/10012476141
Several developing countries feature weak performances as exporters of differentiated goods to developed countries. This paper builds a conceptual framework to explain the obstacles that prevent producers of differentiated products from establishing a consistent presence in the developed world...
Persistent link: https://www.econbiz.de/10012461710
We estimate productivities at the sector level for 72 countries and 5 decades, and examine how they evolve over time in both developed and developing countries. In both country groups, comparative advantage has become weaker: productivity grew systematically faster in sectors that were initially...
Persistent link: https://www.econbiz.de/10012461851
We explore the relationship between proximity of buyers and sellers and the organizational form of outsourcing. Outsourcing can be "contractual" in which suppliers undertake specific investments or involve "generic" market transactions. Proximity expands the variety of products sourced through...
Persistent link: https://www.econbiz.de/10012466786
American metropolitan areas with comparable geographic units in Brazil, China and India. Both Gibrat's Law and Zipf's Law seem … to hold as well in Brazil as in the U.S., but China and India look quite different. In Brazil and China, the implications … correlation between density and earnings is stronger in both China and India than in the U.S., strongest in China. In India the …
Persistent link: https://www.econbiz.de/10012456671
) can be affected by the movements in the center economies - the U.S., Japan, the Eurozone, and China. We apply a two …
Persistent link: https://www.econbiz.de/10012457538