The paper constructs a general equilibrium model of North–South trade with nontraded goods, real exchange rate, and a continuum of components that North partly offshores to South. It is shown that a protectionary policy which restricts offshoring may have the unintended consequence of widening...

By bridging the gap between the strategic model of sanctions and the public choice framework of sanctions, the authors introduce a new sanctions game. Contrary to an earlier finding, they show that the partial compliance of the target country, along with mild sanctions, are not only an...

Using a general equilibrium model of a small developing economy, the authors demonstrate that the introduction of asymmetric adjustment costs makes the rate of urban employment respond to an exogenous shock in the aggregate capital endowment, raising the possibility of several counter-intuitive...

A key goal of renewable resource managers in developing countries is to take actions to ensure that the resource being managed stays away from irreversible or crisis states, in which it provides neither consumptive nor non-consumptive services to humans. However, despite a manager's best...

Currency depreciation has been studied conventionally in terms of three hypotheses-the elasticities approach, the monetary approach and the absorption approach. In this paper we offer another hypothesis called the price approach, wherein the balance of payment disequilibrium results from an...

In this paper, we re-examine the effects of equity control of multinational firms on resource allocation and national welfare in a model with rural-urban migration and urban unemployment. A large number of recipient (host) countries are developing countries with dual economies. We indicate,...