The knowledge-capital model (KC model), described in <link rid="b8">Markusen (2002</link>), encompasses both market size (horizontal) as well as factor endowment (vertical) explanations to why multinational production occurs. Although the KC model seems intuitively appealing the empirical support has, so far, been...

In this paper, we study how unilateral policies concerning certain conflict raw materials influence prices, illegal mining activities, and welfare. Firms in the North import natural resources from the South to produce final consumption goods. In one of the countries in the South, local groups...

This paper analyzes North-South technology transfers in a model of oligopolistic competition and spatial product differentiation. Two firms in the North supply a high-tech good and a technically related low-tech good. They decide about licensing the low-tech good to suppliers in the South. With...

The paper explains the negative correlation between developing countries' per capita incomes and measures of political risk by relating a government's decision to tax foreign investors to distributional interests in the host country's population. Using a dynamic general-equilibrium model in...