We suggest that bilateral gravity equations augmented by ad hoc measures of absolute supply-side country differences are misspecified. Building on Haveman and Hummels (2004), we develop and test an alternative specification rooted in incomplete specialization that views bilateral gravity...

The objective of this study is to examine recent developments in trade and FDI flows between the EU and the CEEC, trying to anticipate future consequences from the economic integration of the two blocks. Economic theory suggests that integration conveys positive effects upon welfare, due to the...

Such an exceptional event as the creation of the EMU and the euro has not had happened never before. The most common challenges concerning EMU and the euro are: fiscal policy making, monetary policy making, euro area being a non-optimal currency area and the political legitimacy of EMU. It is...

The paper is divided in three sections presenting some stylized facts concerning monetary and exchange rate policy framework in Slovenia. Three periods are covered: Money-based Stabilization Policy (1991-1995), Price and Real Exchange Rate Stability Dual Targeting Policy (1996-2001), and...