We investigate the impact of changes in international trade and domestic transport costs on the internalgeography of a domestic economy linked to the rest of the World through a hub. We address that issue bydeveloping two three regions model, namely a version of the Footlose Entrepreneur and a...

This paper studies the incentives that developing countries have to protect intellectual properties rights (IPR). On the one hand, free-riding on rich countries technology reduces their investment cost in R&D. On the other hand, firm that violates IPR cannot legally export in a country that...

While most economists criticise the GSP for a number of (good) reasons, all preference donors and receivers profess their commitment to what they consider as a tool for developing countries ‘to secure a share in the growth of world trade'. The political support given by both receivers and...

This paper models the trade creating and trade diverting effects of the COMESA free trade agreement (FTA) and MERCOSUR over time using several theoretically consistent gravity equations. The extensive sector-specific TradeProd panel data set from 1980 to 2006 is employed throughout. From the...

Using a detailed database on intra-MERCOSUR tariffs, we estimate the effect of tariff preferences on the origin of imports of MERCOSUR members. The results show tariff preferences affected imports patterns in the cases of Argentina and Uruguay, and to a less extent also those of Brazil. For the...

Power market integration is analyzed in a two countries model with nationally regulated firms and costly public funds. If generation costs between the two countries are too similar negative business-stealing outweighs efficiency gains so that following integration welfare decreases in both...

This paper studies the effect of regional trade agreements on firms' exports. Using detailed information on the content of trade agreements and firm-level exports for 31 developing countries between 2000 and 2020, the analysis shows that the depth of trade agreements matters for the export...