Error correction models impose few prior restrictions on dynamic model specification and allow the data to determine model structure. Despite this obvious advantage, few applications have adopted the error correction model to explain trade flows. An error correction model of cotton import demand...

The Armington trade model distinguishes commodities by country of origin and import demand is determined in a separable two-step procedure. The Armington framework has been applied to numerous international agricultural markets with the objective of modelling import demand. The purpose of this...

Agricultural goods are often treated as final goods in applied agricultural trade models. However, many agricultural traded goods are intermediate in nature. In this paper a production theory approach is applied in deriving export supply and import demand functions for the Japanese textile...

This paper investigates the determinants of foreign direct investment (FDI) and its relationship to trade in the U.S. food processing industry. A representative multinational corporation maximizes profits by choosing between production in the home country, which is exported, and production in a...