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...

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...

During the late 1980s, Norwegian salmon farmers had a market share of over 50% for farmed salmon in the USA. In 1991 a countervailing duty and an anti-dumping duty were imposed on Norwegian exports of farmed salmon to the US which basically closed the market for Norwegian salmon. The primary aim...

Distinguishing between national and international infrastructure, this paper investigates how differences in infrastructure quality may affect the location of firms between countries. The paper employs a model which is particularly well suited for the less-developed-country (LDC) context. The...

This paper presents an endogenous growth model where it is endogenously determined whether entrepreneurs in the poor East choose to innovate or to imitate goods from the rich West. It is shown that we have a unique equilibrium with imitation when trade is relatively expensive, in which case the...

A market is served by domestic and foreign firms, where the latter incurs a trade cost when delivering to the market. We ask now how trade liberalization -interpreted as a reduction in trade costs- affects the profitability and the welfare effects of a merger between two domestic firms.

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...