This paper develops a growth model with two countries, where researchers use formerly developed intermediate goods as inputs. It is found that trade liberalization in these goods speeds up the growth rate if trade costs initially are small and we allow internatinal wages to differ. On the other...

This paper focuses on the appropriate measurement of intra-industry trade as indicator of structural adjustment costs. Vertical intra-industry trade is distinguished from horizontal trade on the basis of industrial organisation rather than quality differences. It is argued that existing dynamic...

Croatia as a Central European transition economy has acceded to the WTO relatively late (2000). Joining the WTO has been seen as a prerequisite for gaining access to the European regional markets (the EU and CEFTA). More importantly however a membership in the WTO was supposed to provide a...

Will reduced trade barriers increase or reduce the chance that the producers in an international duopoly reach a collusive agreement about not exporting into each others domestic markets? Reduced trade costs increase the short-run gains from deviating from a collusive agreement, but can also...

This paper studies greenhouse-gas (GHG) emission controls in the presence of carbon leakage through international firm relocation. The Kyoto Protocol requires developed countries to reduce GHG emissions by a certain amount. Comparing emission quotas with emission taxes, we show that taxes...

The aim of this paper is to study the spatial selection of firms once it is recognized that heterogeneous firms typically choose different locations in respond to market integration of regions having different sizes. Specifically, we show that decreasing trade costs leads to the gradual...

This paper examines the impact of the devaluation of the CFA franc in 1994 and of trade and fiscal reforms on enterprise development in Chad and Gabon. These reforms provide a natural experiment to assess the impact of trade liberalisation in countries with a small and backward manufacturing...

This paper exploits the panel dimension of the Vietnam Living Standards Survey (VLSS) in order to analyze the main changes occurring in agriculture in Vietnam over the period 1993- 1998. This period was marked by a continuation of the reforms that began in 1988 with the implementation of...

Political changes in Eastern Europe will help to cement improving economic relations between those countries and the EC, accelerating a trend that flows in part from the continuing economic difficulties in Eastern Europe. Hungary has little alternative but to seek to continue strengthening these...