This paper analyzes mergers and acquisitions (M&A) as a previously neglected channel of industrial restructuring in the face of trade liberalization. Using the Canada-United States Free Trade Agreement of 1989 as a natural experiment, I show that trade liberalization leads to a significant...

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...

Models with imperfect competition and intra-industry trade have become widely accepted as appropriate frameworks within which to analyze the impact of trade liberalization on industrial agglomeration. This paper makes one modification to the standard model; it allows for taxation of...

A three-sector model of trade and location where two sectors produce intermediate inputs to the third sector is constructed. One of the intermediate sectors is located in the South and produces a freely traded homogenous input, while the other produces a differentiated input which is traded...

Post-production services, such as sales, distribution, and maintenance, comprise a crucial element of business activity. A foreign firm faces a higher cost to perform such services than its domestic rival because of the lack of proximity to customers. We explore an international duopoly model in...