Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a...

Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a...

The reduction in barriers to trade within the European Union has had important but disputed effects on inward direct investment. On the one hand, fears have been expressed that the Union could become a "Fortress Europe", with foreign firms effectively excluded from the internal market. On the...

In this paper, we model trade liberalisation as an endogenous process and shed new light on how economic fundamentals like endowments and technology affect potential gains, the welfare effects of liberalisation and its consequences for intra-industry trade. We construct a general equilibrium...

This paper highlights the crucial role played by international access to intermediate inputs to explain firm-level performance, via two channels simultaneously: trade and FDI. We develop a simple theoretical model showing that trade integration of input market entails an efficiency improvement...

This paper develops a theoretical framework to infer the nature of fixed costs from the relationship between entry patterns in international markets and destination market size. If fixed costs are at the firm level, firms take advantage of an intrafirm spillover by expanding firm-level product...

This paper estimates the cross-price elasticity of exports with respect to investment costs for bilateral relations between the US and 35 partner countries. We show that the relationship depends on country characteristics as predicted by the Markusen et al. (1996) model. When countries differ in...

This volume was prepared by Inga Heiland while she was working at the Ifo Institute. It was completed in July 2016 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It comprises five chapters addressing one or more aspects of international trade and...

In this paper the authors develop an innovative 21 sector computable general equilibrium model of Armenia to assess the impact on Armenia of a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, as well as further regional or multilateral trade policy commitments. They find that a...

In this paper the authors develop an innovative 21 sector computable general equilibrium model of Armenia to assess the impact on Armenia of a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, as well as further regional or multilateral trade policy commitments. The authors find...