In this paper we investigate the welfare effects of technological convergence in the food industries. We extend Krugman's (1980) monopolistic competition model to allow for technological differences between two (groups of) countries. Technological convergence is reflected in a narrowing...

We focus on regulations controlling the spread of noxious weeds, especially the trade effects of regulatory differences across U.S. states. We specify a gravity model for each state’s seed, nursery product, and commodity trade with each other state. Within the gravity model, we examine...

This study uses a unique firm-level dataset to examine how falling trade costs from 1993-2001 affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify many of the predictions of recent heterogeneous-firm models of international trade. For example, falling...

Firms selling products overseas may do so in a wide variety of ways, such a s through trading companies, foreign distributors, brokers, direct sales, license arrangements, and foreign direct investment. Many firms employ a portfolio of arrangements for each of their products. Using a share...

In this article, we analyze the export decision of Korean manufacturing firms with emphasis on those in the food processing sector. A dynamic discrete choice model based on sunk (entry or exit) costs is specified for export behavior. Data for 1996-2002 on 1022 Korean firms, of which 95 are in...

The emerging literature on firm heterogeneity suggests that trade liberalization raises industry average productivity by forcing its least productive firms to exit. Consequently, resources and market shares are reallocated toward the industry¡¯s more productive firms. We extend...

This paper investigates the determinants of foreign direct investment (FDI) and its relationship to trade in the U.S. food processing industry. A representative multinational corporation maximizes profits by choosing between production in the home country, which is exported, and production in a...

This study uses a unique firm-level dataset to examine how falling trade costs from 1993-2001 affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify many of the predictions of recent heterogeneous-firm models of international trade. For example, falling...

The emerging literature on firm heterogeneity suggests that trade liberalization raises industry average productivity by forcing its least productive firms to exit. Consequently, resources and market shares are reallocated toward the industry¡¯s more productive firms. We extend...