We analyze the medium- and long-run effects of international integration of capital markets on specialization patterns of countries. For that purpose, we incorporate induced technical change into a Heckscher-Ohlin model with a continuum of final goods. This provides a comprehensive theory that...

The underlying model analyzes the first time foreign market entry decision of a representative investor who can choose between export and FDI. The model combines the proximity-concentration trade-off framework with the real option methodology and sheds light on the effects of productivity...

We analyze the medium- and long-run effects of international integration of capital markets on specialization patterns of countries. For that purpose, we incorporate induced technical change into a Heckscher-Ohlin model with a continuum of final goods. This provides a comprehensive theory that...

The Eastern enlargement of the European Union (EU) is likely to give a further boost to trade and capital flows, yet empirical evidence on the possible magnitudes is still scarce. This paper uses four different datasets to estimate the determinants of international asset holdings and trade...

Artificial photosynthesis (AP) is an area of well-advanced research involving large international groups at the cutting edge of synthetic biology and nanotechnology. In simple terms it offers to produce a cheap source of hydrogen for fuel through using sunlight to split water, as well as making...

Since the end of WWII, significant progress has been made on the road the liberalisation of global trade. The establishment of a rule-based multilateral trading system administered by the World Trade Organisation (WTO) has been an important part of this process. Yet trade-restricting national...

In this paper we develop a two country general equilibrium extension of the Stockman (1980)-Lucas (1982) equilibrium exchange rate model. This optimising framework gives us the opportunity to analyse the effect of foreign direct investment on trade and welfare of both the investor and the...

There is no doubt that Cuba is working hard to attract foreign investors. In 2014 its foreign investing laws were completely reformed to accommodate this, however, it may be too early to determine whether these reforms actually reduce investor risk. For foreign investors ready to make the move...

The Trans-Pacific Partnership (TPP) promises to have a modest impact on Canada, according to ground breaking research from the C.D. Howe Institute. In “Better in than Out? Canada and the Trans-Pacific Partnership,” authors Dan Ciuriak, Ali Dadkhah, and Jingliang Xiao, find that some sectors...

This paper develops a model of foreign direct investment (FDI) in a computable general equilibrium (CGE) framework by distinguishing between the activities of domestic and foreign-owned firms in both production and demand. Using a variant of the Armington assumption, the model is implemented by...