In the 90’s, the Mercosur countries experienced a strong growth of trade and foreign direct investment (FDI). To examine the relationship between FDI, trade and regional integration in the Mercosur, we tested different disaggregated gravity equations on trade and FDI flows between two Mercosur...

This paper introduces an alternative index to measure the external sector from a different focus. The indicator, called the “external sector development index” (SXi), is a new analytical tool for studying the external sector behaviour of any country or region. The SXi has four objectives....

Using the hybrid of Heckscher - Ohlin and Specific Factor models of trade we show that economic recession led shock results in a loss for both capitalists and skilled workers. Some of the unionized unskilled workers lose formal sector employment and move onto the informal sector. In case capital...

This paper builds a general equilibrium model for a small open economy with unemployment of unskilled labor to assess the impact of a recessionary shock. It is shown that irrespective of the factor intensity assumption skilled wage and rental ratio goes up if recession led price fall is...

Pakistan is second largest importer of tea. It is based on the fact that negligible part of the consumption of tea is produced domestically. The import analysis of tea is significant to check the import bill. The paper empirically investigated the determinants of import of tea using annual time...

Like many countries, Spain has gone through a series of financial crises, both before and after its industrialization. There are many underlying causes for these crises, as well as for the current Spanish downturn. It is worth noting that there are similarities between recessions throughout the...

Over the past decade Pakistan remained involved in two major trade agreements with in the South Asia (Pakistan & Sri-Lanka FTA and SAFTA). It is meaningful from an operational and policy perspective to evaluate Pakistan's trade performance in South Asia against its objectives of greater trade...

Under the global crisis impact the structure of international trade flows witnessed significant changes. In the case of Romania, paradoxically for an emerging country, in terms of product composition during 2007-2010, the share of capital goods decreased in total imports and increased in total...

BACI draws on United Nations COMTRADE data and covers more than 200 countries and 5,000 products, between 1994 and 2004. Imports and exports flows are reported annually by 130 countries to United Nations in values and quantities. When both exporting and importing countries report, we have two...

This paper shows that the Poisson quasi-maximum likelihood estimator applied to the gravity model produces estimates in which, summing across all partners, actual and estimated total trade flows are identical. Other methods such as OLS do not have this desirable property. Indeed, Poisson is the...