We study the incentive that a government in the South has to protect the intellectual property rights of Northern firms, and the consequences of the decision taken by the South for welfare in the North and for efficiency of the world equilibrium. We conduct our analysis in the context of a...

The integration of core labour standards into the WTO has been demanded mostly on either humanitarian or fair trade grounds. While both reasons can be justified theoretically, the case for integration remains unclear. Whereas the humanitarian integration of core labour standards is a question of...

The paper surveys the literature that combines growth and trade into models of North-South interaction. We distinguish two strands of growth theory: Old (exogenous) and new (endogenous) growth. We also distinguish old trade theory which assumes constant returns to scale and perfect competition,...

Countries have different comparative advantages in quality. These might be due to technological differences, or to reputation differences of the sort described in Klein & Leffler (1981). Reputation differences are particularly interesting, since good reputations are a form of social capital that...

This paper examines whether a Northern firm prefers to export or to engage in FDI to serve the South. If the firm engages in FDI, its technology is imitated, and a Southern firm enters the market that may sell in both markets. The Northern firm may invest to prevent product piracy in the North....