The paper proposes a model to investigate the influences of agglomeration on heterogeneous firms' exporting behaviors. In the model, firms are heterogeneous in productivity. Selection effect and agglomeration economies caused by agglomeration increase firms' productivity and decreases industrial...

This paper develops a theory of strategic outsourcing that arises due to trade liberalization. With trade liberalization, a domestic firm may choose to purchase the intermediate good from a more efficient foreign producer, who also competes with the domestic firm in the final-good market. This...

Purpose – Recently, studies call for a more nuanced perspective on different internationalization patterns pursued by early internationalizers. These studies argue that most born global firms turn out to be born regional and that the proportion of true born global firms would be overestimated....

We develop a North-South model of international trade and transboundary pollution to analyze the relationship between environmental technology transfer and the South's incentive to sign an international environmental agreement (IEA). First, we show that technology transfer could either increase...

We develop a North-South model of international trade and transboundary pollution to analyze the relationship between environmental technology transfer and the South's incentive to join an international environmental agreement (IEA). We find necessary and sufficient conditions under which...

Suppose that governments care about their tax revenue and local firms have some say in environmental regulations. Then, the level of employment and environmental compliance may be negotiated. We find that firms located in different countries can improve their threat-point payoffs by mutual...