This paper provides an empirical explanation to the observed disparity in cross-border M&A inflows to developing and developed countries over the last two decades. We show two main results. First, the disparity can be attributed to the difference in the quality of institutions between the two...

Along with export promotion (EP), import substitution (IS) is one of the two main trade strategies for developing countries. We show that an IS industry may remain an infant and still be able to export. Therefore, the ability to export is not necessarily evidence of import substitution being...

The proliferation of overlapping free trade agreements (FTA) in the recent years has led to hub-and-spokes (HAS) throughout the world. Being avid subscribers to FTAs, many countries in the Asia-Pacific region including the USA, Japan, Singapore, South Korea, Thailand and Australia have become...

This paper examines an interplay between tariff policy and parallel-import policy. From a welfare point of view, a host government would prefer allowing parallel imports to prohibiting them. However, if a tariff is not at the government's disposal, there will be no parallel imports in...

Mezzeti and Dinopoulos (1991) show that a free trade agreement (trade liberalization) decreases wage rate. However, Naylor (1998) shows that trade liberalization increases wage rate. Both papers consider tariff as exogenously given. In this paper we show that these conflicting results can be...

The present article aims to empirically examine a relationship between trade openness and the pattern of vertical integration using the six-digit North American Industry Classification System (NAICS) of U.S. manufacturing data from 2002 to 2006. We use the index of vertical integration made out...

Along with export promotion (EP), import substitution (IS) is one of the two main trade strategies for developing countries. We show that an IS industry may remain an infant and still be able to export. Therefore, the ability to export is not necessarily evidence of import substitution being...

This paper assesses whether a bilateral FTA raises the growth rates of the two countries engaging in the FTA. A nonparametric matching approach, which imposes no specific functional forms and can be applied to a broad range of data structures, is employed to estimate the FTA effect on the...

Bargaining sequences, though vital to the real-world business strategies, are often treated as exogenously given. We examine bargaining sequences in the setting where a downstream firm makes a merger decision with an upstream partner and faces a negotiation with a union. When the downstream...