This paper re-estimates the correlation between trade and business cycle synchronization. Different from other previous studies, we employ long-run GDP and trade data and use the GDP cross-correlation index a la Cerqueira and Martins (2009) rather than over-time cross-correlations. We find a...

This paper examines the effects of firms dynamics on industry level productivity growth in India during the period 2000-01 to 2005-06 using plant level panel data of 22 manufacturing industries. The empirical analysis is based on decomposition techniques of aggregate productivity growth. The...

This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms economic geography model, where the three countries have different market (population) size. We show how the effects of the two policies differ, in...

In an economic geography model with firm heterogeneity, Baldwin and Okubo (2006) show that regional policies for promoting periphery development attract low-productivity firms and adversely affect the productivity gap within a country. This paper empirically examines their theoretical prediction...

This paper examines whether agricultural growth through public expenditure, ODA or investment will improve significantly the prospects of achieving MDG 1 of halving poverty in Asia and the Pacific Region. As more than a few countries in this Region recorded impressive economic growth in the...

This paper argues about some missing aspects of intra-industry trade (IIT) and proposes some alternative measures to better capture the nature of IIT. We show the over-time evolution of the number of IIT products, and propose an index which captures the share of the number of IIT products over...

Lee and Chinn (2006) and Chinn and Lee (2009) decomposed current account and real exchange rate into temporary and permanent shocks and argued that a temporary shock creates the combination of a current account surplus (deficit) and real exchange rate depreciation (appreciation). This paper...

We explore the effects of environmental and trade policies with negative consumption externalities when a domestic firm and a foreign rival produce imperfect substitutes and compete in the domestic market. Consumption of the foreign product generates more emissions than that of the domestic...

We study rational bubbles in a standard linear asset price model. We first consider a class of bubble processes driven by multiplicative iid shocks. We show that a bubble process in this class either diverges to infinity with probability one, converges to zero with probability one, or keeps...

Using regional data of Kenya, we found that income spillovers depend on ethnic similarity, which suggests the influence of ethnic bias. This result implies, for policy making, that the question of interregional transaction costs cannot be narrowly focused on problems of transportation...