In recent years the tremendous growth of the service sector—including international trade in services—has outstripped that of manufacturing in many industrialized nations. As the importance of services has grown, economists have begun to focus on policy issues raised by them and have tried...

This paper applies a computable general equilibrium model to investigate the potential economic effects of trade liberalization across the Taiwan Strait. Our simulation results reveal that cross-Strait trade liberalization will have significant positive impacts on external trade, domestic...

This paper examines the impact of exchange rate uncertainty on the timing of foreign direct investment (FDI) with heterogeneous investing motives. We first extend Dixit-Pindyck's real options model to show that while an increase in exchange rate volatility tends to delay FDI of a market-seeking...