Although it is generally acknowledged that international mobile roaming charges are too high, a successful formula for achieving reduction has so far proven elusive. Direct regulatory intervention to lower prices may be required. The success of such an approach depends upon the ability of...

We use unique plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. To guide our empirical analysis we develop a monopolistic-competition model of the materials sourcing decisions of heterogeneous...

A unilateral tax on CO2 emissions may drive up indirect carbon imports from non-committed countries, leading to carbon leakage. Using a gravity model of carbon trade, we analyze the effect of the Kyoto Protocol on the carbon content of bilateral trade. We construct a novel data set of CO2...

Entrepreneurs who decide to start a business are faced with different levels of effective entry costs in different countries. These costs are heavily influenced by economic policy through entry regulation and subsidies. In this paper we present a two-country general equilibrium model with...

This paper studies the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we show that the impact of a depreciation will be less positive - or even...

The empirical U-shaped pattern between product diversification and economic development has been widely examined, but here we analyze the determinants of diversification. We find that a high level of rent-seeking activities has a large impact on the diversification of nations: in countries where...

Using a gravity model for 35 countries and the years 1995-2006 we estimate the impact of regional trade agreements in Africa (in particular ECOWAS and SADC) and compare this to the a benchmark of North South trade integration (Europe's preferential trade agreement). We find that - ECOWAS and...

This paper uses the gravity model of trade to investigate the link between foreign aid and exports in recipient countries. Most of the theoretical work emphasizes the negative impact of aid on recipient countries' exports primarily due to exchange rate appreciation, disregarding possible...

Significant changes have taken place on the world wheat market over the last decade. Russia, a former net wheat importer has become a leading exporter with a world market share of 13.8 percent in 2009/2010. Though there are several studies on the pricing behaviour of Canadian and US wheat...

The last decade of the 20th century and the first decade of the current century have seen a continuous shift of the economic dynamic from North American and European countries to the pacific countries, specially the ones located on Eastern Asia, highlighting the Chinese growth. However, Brazil...