This paper studies city size in a developing country. The country consists of two regions, a city producing a manufactured good and a rural area producing an agricultural good. Manufacturing can take place either formal or informal sector, the formal sector being characterized by increasing...

The paper studies how uncertainty about future trade arrangements affecting firms' competitiveness and market access, may influence firms' investment behaviour and choice of location. Our analysis is based on a model of imperfect competition, and we show that risk aversion is not a necessary...

It is shown that when some countries take unilateral steps towards solving environmental problems, efficiency in the global economy will be enhanced by implementing trade provisions along with domestic environmental regulations.

This paper studies the effects of changes in transportation costs on industrialization, inter-regional trade and migration.

Using matched worker/plant level data for Norway, trade and technology explanations for the change in skill composition are assessed using direct evidence on the job creation and destruction for workers with high, medium and low education level. In order to disentangle the supply and demand...

Through we have some evidence that relatively closed economies are likely to have disappointing long-term economic growth rates, empirical research indicates that partial trade liberalization between more open economies has ambiguous growth effects. In the present model there are two countries,...

This paper studies non-cooperative commodity taxation in a trade model with imperfect competition and trade costs. Nationally optimal tax policy simultaneously tries to correct the domestic distortion from imperfect competition and to shift rents to the home country.

Applying a newly developed CGE-model, we present scenarios for the future economic geography of Europe. The model divides the world into ten regions, of which five are European, and there are 14 industries, of which 12 are imperfectly competitive. With a complete input-output structure, the...

This paper analyses the marginal cost of public funds under different international tax regimes when the government has a uniform, broas-based value added tax as its only source of revenue and when countries produce both tradeable and non-tradeable goods. Using the concepts of direct and...

In the last two decades we have witnessed a rapid increase in foreign direct investment (FDI). Simultaneously, there has been a process of economic integration between countries, bringing down costs of trade. At first sight, the increased importance of FDI seems paradoxical; we would expect...