Why is there apparently a positive correlation between saving and trade liberalization, in particular for the most successful developing countries? Despite tremendous research efort this puzzle is to a large extent still unresolved. In this general equilibrium model we show one channel which may...

This paper explores the links between international trade theory and the practice of trade and industrial policy in open economies, with special attention to three areas where theorical lessons have been misunderstood in policy debates. I argue that the "concertina rule" for tariff reform...

This paper analyses the impact of various configurations of regional economic integration on member countries as well as on outside countries under realistic assumptions. That is, we consider constant external tariffs as required by Article XXIV of the GATT and the asymmetric formation of the...

Two-sector models with traded and non-traded goods have problems accounting for the stylized fact that the real exchange rate appreciates and consumption booms for several years following trade liberalization, or exchange-rate-based stabilization programs, in small open economies. The paper...

The objective of this document is to analyze the tariff component of the MERCOSUR common trade policy, in order to determine the effective level of harmonization reached between member countries. The common trade policy and its creation process are described, indicating the main deflections from...

This paper offers an economic assessment of the opportunities and challenges provided by the WTO’s Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty,...

We examine total, market and idiosyncratic risk and correlation dynamics using daily data from 1993 to 2001 on the 6 largest euro-zone stock market indices and 42 firms from the Dow Jones Eurostoxx50 index. We also estimate conditional correlations using the asymmetric DCC-MVGARCH model....