This paper analyzes trade policy in an integrated market in which two firms are price competitors. If tariff or export subsidies are in place, there is no equilibrium in pure strategies. The import tariffs and export subsidies give one firm a price advantage in one market. The effect of this is...

This paper gives an overview of different analyses of the effects of globalization on industrial location. It suggests that comparative advantage is inadequate to explain several aspects of the changing patterns of trade and location, and that it needs to supplemented by approaches based on new...

This paper addresses the efficient management of natural resource revenues in capital-scarce developing economies. It departs from usual prescriptions based on the permanent income hypothesis and argues that capital-scarce countries should prioritize domestic investment. Because revenue streams...

The observation of an increase in the ratio of skilled to unskilled wages in the high-income countries and in some cases in low/middle-income countries has led to considerable discussion and controversy as to its cause. Virtually none of the analyses have considered a role for multinational...

There are two imperfectly competitive industries, upstream and downstream, and two locations. Where do the industries locate? Production occurs in both locations when transport costs are high (industry must be close to consumers) or low (factor prices determine location). Imperfect competition...

This paper develops a model of international trade between economies which each contain a monopolistically-competitive industry producing differentiated products under increasing returns to scale. Firms have larger shares in their domestic market than in their export market and the implications...