We develop a general-equilibrium model to capture key features of the retailing and of the manufacturing industry in order to understand how these two industries interact and how labor is allocated between them. We show that the observed shift in employment from manufacturing to retailing, the...

This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...

This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...

In this paper, we adopt the vertical differentiation duopoly framework to give a full description of firms' relocation decisions, when the removal either of trade barriers or of restrictions on capital outflows/inflows (globalization) allows them to serve the domestic market through foreign...

This paper examines trade integration of East Asian countries through the lens of global value chains (GVCs). It first gauges the extent and involvement of trade in value-added (TiVA) for East Asian countries. The analysis confirms that reliance on backward GVC participation outside of the...

This paper investigates Greece’s involvement in GVCs using the decomposition suggested by Wang et al. (2013, 2018) and applied to the World Input-Output Database (WIOD). In general, we find that domestic value added is high in service sectors and much lower in manufacturing, in line with the...

Even as a number of developing countries have been able to reap the export opportunities presented by the rise of global value chains (GVCs), Nepal's export performance remains dismal. This paper examines the challenges and constraints faced by manufacturing small and medium-sized enterprises...