This paper derives optimal trade and domestic taxes for a small open economy containing a monopolistically competitive (MC) sector in which firms may have heterogeneous productivity levels. Domestic protection brings gains from expanding the number of product varieties on offer, but these gains...

This paper documents how poorer and less educated US households hold a smaller fraction of foreign assets in their financial portfolio. This average home bias of the poor is partly due to a lower probability of participating in foreign asset markets, often attributed to fixed costs of market...

Natural resources account for 20% of world trade, and dominate the exports of many countries. Policy is used to manipulate both international and domestic prices of resources, yet this policy is largely outside the disciplines of the WTO. The instruments used include export taxes, price...

This study explores the impact of trade on the economic growth, using seemingly unrelated regression model for SAARC countries namely Bangladesh, India, Pakistan and Srilanka for the period of 1980-2012. Trade factors include total exports, total imports, terms of trade, trade openness and...

Australian exports of liquefied natural gas (LNG) will rise significantly over the next few years as a number of large-scale investment projects reach completion. The bulk of these exports will be to Asian customers under long-term contracts, with their price linked to the price of oil. The...

This paper studies the effect of the terms of trade on labor supply, industrial capital adjustment and the current account in a two-period small open economy in which endogenous labor supply is considered and labor is assumed to be mobile between sectors, given the situation that capital is a...

In this work we assess the existence of a S-Curve pattern in ten Central and Eastern European Countries (CEEC-10) for the relation between the trade balance and the terms of trade. Empirical results support the existence of this curve for Slovenia, Czech Republic, Hungary, and also for an...

We use a model with full intertemporal optimization and short-run rigidities in the real wage of the Fischer-Gray type to demonstrate the effects of deficit spending in different employment regimes. We allow for prices to exhibit upward flexibility, although once set at the beginning of one...

We conjecture that extreme land abundant endowment constitutes a structural restriction driving sectoral specialization and terms of trade volatility. We estimate and compare several volatility indicators for Argentina, Australia and New Zealand in 1870-2009 finding co-movements, structural...

Gains in terms of trade in recent years have been a source of prosperity in Africa, Latin America, and the Middle East. This article discusses in detail the behavior and the impact of terms of trade changes. The evidence shows clearly that GDI and GDP have been directly influenced by this...