This paper focuses on finding out the leading sectors with high potential to maintain and consolidate the comparative and competitive advantages of the Romania’s exports and analyses the change in the pattern of Romanian export specialisation by estimatin

Over the past two decades, globalisation has given a boost to world trade, has grown one and a half times faster than world output, and the difference has even been considerably higher in recent years as world trade growth accelerated very strongly. More

We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only...

This paper presents a new model of Bertrand competition between heterogeneous firms in the open economy where the macroeconomic distribution of markups responds to the degree of trade openness and the underlying level of technology in each trading partner. The model's simple closed-form...

This paper analyzes how terms of trade affect aggregate productivity using a two-country monopolistic competitive business cycle model driven by aggregate technology shocks. The inefficiency of the equilibrium implies that each country’s productivity is affected by the terms of trade. This...

In this article, the export multiplicity of Azerbaijan Republic has been analyzed during 1995-2009. Firstly, the relationship between GDP on CPI has been estimated and it found as a positive and meaningful. Secondly, the effect of GDP on Net export has been estimated, where these two findings...

As industrialization and globalization are spread across the world, price competition is growing fierce in the final-good sector while many intermediate goods are enjoying global imperfect competition. Hence, when prices of intermediate goods are globally sticky in LCP (local-currency pricing)...

This paper presents a two-country two-industry monetary model, with intermediate inputs and transport costs, which builds a bridge between the New Open Economy Macroeconomics and the New Economic Geography literatures. Endogenously asymmetric shocks arise in this model when the exchange rate...

This paper builds a dynamic general equilibrium trade model, in which heterogeneous intermediate goods are produced and traded in a Melitz (2003) type sector. These intermediate goods are used in the production of a final good, which can be used for consumption, capital accumulation, or...

Using bilateral trade flow data from 1979 to 1999, we estimate trade integration between Chile and its principal trading partners during the period (European Union, United States and Latin America). Our estimates are based on a gravity speci cation, theoretically grounded on a monopolistic...