Based on the Heckscher-Ohlin-Vanek (H-O-V) theory, the paper develops theoretical models that lead to estimating cross-industry equations in a proper way, when allowing for departures from some of the strong assumptions of the H-O theory, such as perfect competition, equal factor unit...

This paper compares two alternative measures of technology differences across industrial countries during 1970-92: one measures differences in labor productivity (the Ricardian measure), and the other differences in total factor productivity (the Hicksian measure). The distinction between the...

This paper elaborates on a number of key principles that need to underpin a coherent and development-friendly architecture for the WTO. The key principles include enlarging the scope of WTO bargaining to include labor flows as well as capital flows; creating a structure that would provide a...

This Selected Issues paper assesses the impact of Vietnam’s World Trade Organization (WTO) accession. It describes the main terms of Vietnam’s accession as regards trade in goods and services, and uses a partial equilibrium simulation model to estimate the likely impact of WTO...

The importance of services and the international trade in services is growing systematically. There are some reasons for that, especially the rapid development of IT technologies. This increase in the international trade in services is a global phenomenon, however there are some other specific...

This article advances a blueprint for understanding the function entrepreneurs perform in international trade, by drawing on the connection between comparative advantage and entrepreneurial judgement. The mutual benefits of specialisation and exchange are demonstrated whenever we find a minimum...

Illegal logging has become a global issue because of its effects on biodiversity and climate change. In order to reduce illegal logging, many countries around the world have introduced regulations of international trade of forest products. This paper examines the effects of efforts aimed at...

The theory of the rm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way institutions determine international trade patterns. We find that...

The objective of this paper is to demonstrate a simple Ricardian model of international trade for health care industries of the USA and India. Our motivation is to illustrate that specialization and free trade result in gains from international trade. We will shed some light on the economics of...

Financial development has been argued as a potential source of comparative advantage and its relationships with trade has been theoretically developed. This theory posits that countries that are well financially developed should experience greater volumes of international trade. We empirically...