New Economic Geography (NEG) models are difficult to confront with the data, since "on the one hand, they generally emphasise the unleashing of agglomeration forces after trade liberalisation, but on the other hand, they also accomodate multiple equilibria and non-monotonicity" (Brülhart,...

A model of North-South multinational enterprises (MNEs) is constructed in which both horizontal and vertical MNEs anse endogenously. While honizontal MNEs are more active when host countries become more similar in national income and human capital, vertical MNEs are encouraged by cheap unskilled...

In this study, we argue that the conventional intra-industry trade (IIT) index does not address the quality issue directly and propose a methodology to make full use of unit-price gap information to deduce quality differences between simultaneously exported and imported products. By applying...