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This paper characterizes the optimal reciprocal trade policy in the environment of Melitz (2003) with firm productivity … heterogeneity. In particular, without making parametric assumptions on firm productivity distribution, this paper derives the … industry productivity, lowering aggregate price; a reciprocal import tariff helps correct the markup distortion, increasing …
Persistent link: https://www.econbiz.de/10015397890
The first objective of this paper is to present theoretical approaches to the impact of trade growth (induced by monetary integration) on business cycle synchronization which is an important factor of a country's readiness for a currency union accession. The main conclusion from the first part...
Persistent link: https://www.econbiz.de/10015192129
We set up a trade model with two countries, two sectors, and one production factor, which features a home-market effect due to the existence of trade costs. We consider search frictions and firm-level wage bargaining in the sector producing differentiated goods and a perfectly competitive labor...
Persistent link: https://www.econbiz.de/10014497516
small losses to Armenia primarily due to a loss of productivity from lost varieties of technologies from the Rest of the …
Persistent link: https://www.econbiz.de/10010307626
with Dixit-Stiglitz endogenous productivity effects from additional varieties. They specify a numerical model, with …
Persistent link: https://www.econbiz.de/10011387739
This paper attempts to examinePakistan's trade patterns with South Asian countries by using a gravity model of trade. The main objective of the study is to quantify the long-run impacts of gravity variables. To achieve this objective, a panel data set for the period 2003 to 2017 has been used....
Persistent link: https://www.econbiz.de/10013204654
Using a gravity model, this article presents an analysis of aggregate trade flows aimed at identifying China's impact on Latin America's trade. The results obtained indicate that: i) China's growth in the last years implied a growing supply of exports to this market from most countries in the...
Persistent link: https://www.econbiz.de/10011538726
This paper investigates selected short- and mid-term effects in trade in goods between the Visegrad countries (V4: the Czech Republic, Hungary, Poland and the Slovak Republic) and the Republic of Korea under the framework of the Free Trade Agreement between the European Union and the Republic of...
Persistent link: https://www.econbiz.de/10011922473
This study offers an empirical microlevel analysis of the pass-through effects of the East African Community Common External Tariff on consumer prices in Kenya. Using data from the Kenya Integrated Household Budget Surveys conducted in 2005 and 2015, this research employs a fixed-effects model...
Persistent link: https://www.econbiz.de/10014368434
This paper derives the gravity equation with intermediate goods trade. We extend a standard monopolistic competition model to incorporate intermediate goods trade, and show that the gravity equation with intermediates trade is identical to the one without it except in that gross output should be...
Persistent link: https://www.econbiz.de/10015397811