We argue that geographical clustering helps the weakest firms to survive. We model this neglected negative externality by adapting the heterogeneous firms model of Melitz (2003) to include firms that invest in R&D and firms that do not. Separating the chance of post-entry market exit into a...

This study is the first to investigate neighborhood clustering of a personality trait – cynical hostility (a sense of mistrust of others amplified by suspicious antagonism.) Cynical hostility increases physiological reactivity by influencing appraisal and coping when stressful events occur and...

This paper compares the dynamics of the process by which geographical clusters emerge in the US and UK computer industries, by modelling the evolution of firm growth and entry. In both countries, new companies are attracted by industry strength in particular sub-sectors in a particular region....

This paper examines the interactive effect of distance and trade on international conflict and cooperation. The effect of geographic distance depends on trade, while the effect of trade varies with geographic distance. Trade reduces conflict to a greater extent when dyads are geographically...

We develop a multicountry model in which governments aim at excessive spending in order to serve the narrow interests of the group in power. This puts pressure on the monetary authorities to extract seigniorage, and thus affects the incentives countries would have to participate in a monetary...

This paper examines the potential advantages and disadvantages of adopting a common currency arrangement among the six IMF member Pacific island countries that have their own national currency. These countries are Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu. The study...

Purpose – The purpose of this paper is to investigate differences between 46 countries, 25 of which are EU members, in their technological communication standards and technological efforts. Design/methodology/approach – Two indexes were developed. The first, labeled Index 1, measures the...

This Selected Issues paper analyzes the income dispersion and comovement in the Eastern Caribbean Currency Union region. It finds that incomes are diverging, with the Leeward Islands converging to a higher income level than the Windward Islands. The paper examines the macroeconomic impact of...

This paper discusses key findings of the Cluster Report on German-Central European Supply Chain (GCESC). Since the 1990s, a GCESC has evolved, manufacturing goods for export to the rest of the world. Reflecting this, bilateral trade linkages between Germany and the Czech Republic, Hungary,...

In this paper, we propose an exploratory approach which is essentially methodological and empirical in order to explore geographic proximity at the intra-regional level. Recent works suggest that a firm has to be located in a close neighborhood in order to benefit from knowledge externalities,...