Although Foreign Direct Investments (FDI) are as important to the world economy as exports, the extensive literature on trade costs has no strong parallel for FDI. Data are hard to come by, and many of the barriers to FDI are unobservable. This paper circumvents the problem by inferring the...

This paper analyzes anti¬dumping (AD) policies in a two-country model with heterogeneous firms. One country enforces AD so harshly that firms exporting to the country choose not to dump. In the short run, the country enforcing AD experiences reduced com¬petition to the benefit of local firm...

Buyers are typically unaware of the full set of offers when making a purchase. This paper examines how international trade interacts with this problem of market intransparency. Sellers must communicate their offers through costly advertising, but cannot reach all buyers. Consequently, no market...

This paper analyzes anti¬dumping (AD) policies in a two-country model with heterogeneous firms. One country enforces AD so harshly that firms exporting to the country choose not to dump. In the short run, the country enforcing AD experiences reduced com¬petition to the benefit of local firm...

Buyers are typically unaware of the full set of offers when making a purchase. This paper examines how international trade interacts with this problem of market intransparency. Sellers must communicate their offers through costly advertising, but cannot reach all buyers. Consequently, no market...

Although Foreign Direct Investments (FDI) are as important to the world economy as exports, the extensive literature on trade costs has no strong parallel for FDI. Data are hard to come by, and many of the barriers to FDI are unobservable. This paper circumvents the problem by inferring the...

Buyers are typically unaware of the full set of offers when making a purchase. This paper examines how international trade interacts with this problem of market intransparency. Sellers must communicate their offers through costly advertising, but cannot reach all buyers. Consequently, no market...