This chapter assesses the role of good faith in managing parallel investment and trade disputes. It considers the … jurisdictional and substantive overlap in trade and investment regimes that give rise to parallel disputes, and the normative … rights, and this chapter evaluates the extent to which they may be deployed in trade and investment regimes. While finding …

costs has no impact at all, in steady-state, on firms' investments in process innovation. We then show that if only a subset … of firms export, a decline in marginal trade costs raises process innovation in exporting firms relative to that of non …-exporting firms. This reallocation of process innovation reinforces existing patterns of comparative advantage, and leads to an …