Showing 1 - 10 of 168
Abstract This paper shows that vertical foreign direct investment will reduce prices but the aggregate welfare effect is unambiguously positive only under free market entry. Using a standard model of imperfect competition, we develop this result by considering two different cases. In the first...
Persistent link: https://www.econbiz.de/10014586837
Abstract A theoretical analysis examines the relationship between intra-firm wage dispersion and employment at establishments. The analysis relies on the absence of a theoretical consensus regarding the influence of wage dispersion on labor demand. To prove the theoretical considerations,...
Persistent link: https://www.econbiz.de/10014619338
The paper empirically investigates the inter-linkage between FDI inflow and international trade in service sector in … more than 60 percent of output and almost 35 percent of trade in global economy. The sector also accounted for 63 percent … theoretically established causal relationship between FDI inflow and international trade in services towards sustainable and service …
Persistent link: https://www.econbiz.de/10012047646
Abstract We model imperfect contract enforcement when the victims of default resort to spot trading because the act of repudiation reveals a favorable outside option. We show that enforcement imperfection is essentially distinct from the contract incompleteness analyzed in the previous...
Persistent link: https://www.econbiz.de/10014586826
Abstract In this paper, we analyze the trade war between two large countries when the trade policy is decided through … majority voting. We show how the distributive aspect of trade policy interacts with the strategic aspect. It is shown that the … of the trade war at home (abroad) is larger (lower) than the Johnson-Mayer one. This is to say that the strategic effects …
Persistent link: https://www.econbiz.de/10014586839
This paper examines the composition of bilateral manufacturing trade in terms of its pollution intensity. A growing … share of world trade takes place between nations who are members of the same regional trade agreement (RTA). We analyze how … the formation of RTAs affects the composition of trade. We focus on whether richer or poorer nations specialize in …
Persistent link: https://www.econbiz.de/10014587442
Abstract The current paper addresses the relationship between trade and endogenous pollution levels, with a focus … different from the previous literature. The mechanism linking pollution and trade here is that trade policy provides the home …. In that sense, the existence of trade helps reduce domestic pollution compared to what would prevail in a situation of …
Persistent link: https://www.econbiz.de/10014587446
on exogenous country characteristics to predictions on trade flows and pollution levels. I then discuss recent …
Persistent link: https://www.econbiz.de/10014587448
We model imperfect contract enforcement when the victims of default resort to spot trading because the act of repudiation reveals a favorable outside option. We show that enforcement imperfection is essentially distinct from the contract incompleteness analyzed in the previous literature....
Persistent link: https://www.econbiz.de/10014587555
advantage in environment-intensive industries. International trade, in this setting, is not necessarily welfare improving. When … corruption responds endogenously to the over-exploitation of resources, it is possible for international trade to generate forces … that improve resource management by reducing corruption. Therefore, in this case trade could provide gains in addition to …
Persistent link: https://www.econbiz.de/10014587577