China's programme for inter-regional economic connectivity, the Belt and Road Initiative (BRI), will develop new trade routes and production chains linking predominantly developing world economies with the Chinese market, making a unique contribution to global economic development but disrupting...

Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to comparative advantage, expanding the industries that do...

We analyze the internationalization of Russian firms based on a qualitative case study implemented in Finland. We empirically elaborate the concept of institutional arbitrage (Gaur and Lu, 2007; Boisot and Meyer, 2008), which refers to the situation where a firm is provided opportunities to exploit...

This paper describes the determinants of FDI location among Italian provinces, focusing on the role of market potential (in terms of market access to Mediterranean and European countries) and institutions (presence of Mafia-type crime, corruption of public officers, inefficiency of the labour...

The unprecedented economic rise of Eastern Europe and China in the last two decades has triggered concerns in developed Western market economies about adverse effects for domestic labor markets trough increased import competition. Simultaneously, exports from developed countries to these new...

This paper claims that distance alone is a poor proxy for international transport costs in gravity equations. We develop a theoretical framework with a manufacturing and a transport sector, where the level of manufacturing exports determines the demand for transport. Above a certain threshold,...

The Gravity Model is the workhorse for empirical studies in International Economies and it is commonly used in explaining the trade flow between countries. Recently, several studies have showed the importance of taking into account the spatial effect. Spatial Econometric techniques meet this...