We model the production allocation choices of a multinational enterprise (MNE) in a three-country framework-one northern country and two southern ones. Products made in the South are of lower quality than those made in the North. Substitutability between goods differs due to variations in...

This paper models the interactions of a labor union and a monopoly firm under an import quota in a small open economy. The distorted equilibrium is depicted in a diagram, in which wages and employment in both sectors, and the monopoly rent, can be identified. The imposition of an import quota in...

This paper examines the pollution haven hypothesis using a spatial-economy model of two countries and two sectors. The manufacturing sector generates cross-border pollution which reduces cross-sectoral productivity of agricultural goods, and lowers local income. We derive a demand-reducing...

Multinationals are often required to form joint ventures (JVs) with local firms when entering the host country market. Explicitly taking corporate control into account, we explore the relationship between technology transfer and foreign ownership regulation in the presence of technology...

This paper investigates permanent and temporary immigration and remittance under the coexistence of unionized and non-unionized manufacturing firms in a two-sector economy. The impacts of immigration and remittance on respectively wages, employment, the union-non-union wage gap and national...

This paper constructs a model of international joint ventures (JVs) with political-economy considerations as the main motivation. A foreign firm decides whether to undertake full ownership foreign direct investment (FDI), or to form a JV with a home firm, while the home firm lobbies against FDI....