Working with a panel dataset of of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the service sectors. We first develop a consistent analytical framework for the application of the gravity model jointly to services trade and commercial...

Because of concern that OECD tariff reductions will translate into worsening export performance for the least developed countries, trade preferences have proven a stumbling block to developing country support for multilateral liberalization. We examine the actual scope for preference erosion,...

Protection unconstrained by rules typically varies considerably over time. The policy disciplines introduced in the Uruguay Round in `new' areas such as agricultural, services, and developing country industrial protection will constrain, but not eliminate, this variability. The effects of these...

We examine the role of services in the structure of production and trade. Working with a cross-country sample of 17 social accounting matrices, we develop stylized facts relating upstream and downstream service linkages to incomes and the input-output structure of production. Expansion of...

Most of the large tariff reductions achieved in multilateral trade negotiations have involved tariff-cutting formulas such as the ‘Swiss’ formula. Wide variations in initial tariff rates between active participants, however, call for new approaches under the Doha Development Agenda. This...

We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price equalization set and the integrated intertemporal equilibrium. Under this approach, the aggregate...

This Paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a 23-sector/25-region computable general equilibrium model. Regulatory reform and internal...

This study provides a quantitative assessment of the implications of preferential trade liberalization by the North Atlantic economies. Emphasis is placed on the pattern of production and trade in North America and Western Europe, the pattern of import protection, and the likely trade and income...

The US Corporate Average Fuel Economy (CAFE) regulation mandates, subject to a civil penalty, producers to achieve a certain fleet average fuel economy on sales of new passenger cars. Analysing the incentive effects of CAFE, we find that it affords differential tax treatment to car models with...

We develop a model with endogeneity in key features of industrial structure linked to heterogeneous cost structures under Cournot competition. We use the model to explore issues related to cross-country differences in industry structure and the impact of globalization on markups and pricing,...