Recent calls for reform of the rules of origin in preferential trade arrangements such as the GSP as well as in many free trade agreements between developed and developing countries have focused almost exclusively on the need to relax the requirements of these rules. Without fundamentally...

This paper proposes a new panel model of cross-sectional dependence. The model has a number of potential structural interpretations that relate to economic phenomena such as herding in financial markets. On an econometric level it provides a flexible approach to the modelling of interactions...