We examine the effect of foreign direct investment by exporters on a price of their exporting products. We propose several theoretical models of foreign direct investment for both vertical market structure and horizontal expansions of plants. The features of models considered include partial...

We introduce an explicit incorporation of local distributors in an analysis of pricing behavior of exporting firms in the pricing-to-market literature. We examine pricing behaviors of exporting firms under four different cases of vertical structure; in the case of an independent local distributor...

For the estimation of exchange rate pass-through (henceforth ERPT), except for few evidences based on firm-level data, even the most disaggregated level of national export data is still biased with aggregation over sub-regions within an exporting country. We investigate to what extent this...

For the estimation of exchange rate pass-through (henceforth ERPT), except for some evidence based on firm-level data, even the most disaggregated level of national export data is still biased with aggregation over sub-regions within an exporting country. We investigate to what extent this...

The recent sub-prime financial crisis initially affected the Asian economy to a degree comparable to that of the downturn in the Asian financial crisis; however, the recovery in Asia took place at a much faster pace than during the Asian financial crisis. We investigate whether the effects of...

After the financial crisis originating from the collapse of the US housing market in 2007, financial markets, including stock markets and foreign exchange markets, experienced drastic fluctuations during an adjustment stage. We examine how the financial crisis affected the linkage between...

By analyzing vertical intra-industry trade (VIIT) within Portugal's automobile parts and components industry, this study adds new empirical evidence for the international fragmentation of the production process. For trade partner countries, we choose the EU countries, the BRICs, and the US...

We present a two-country model with explicit incorporation of two regions in the home country and one region in a foreign country. Each region consists of two types of workers: skilled workers, freely mobile across domestic regions, are required to set up a firm, whereas unskilled workers are...

This paper analyzes the effectiveness of Bank of Japan (BOJ) interventions between November 1995 and December 2004 on foreign exchange expectations. Unlike previous studies, we focus on exchange rate expectations of individual market participants in the yen/dollar market. To this end, we use...