This paper attempts to investigate whether high-tech product export causes more technology spillover compared with traditionally primary manufactured goods export. A generalized multi-sector spillover model is presented to involve the causations of export composition and technology spillover,...

This paper develops a two-country, general equilibrium model of oligopoly in which the degree of horizontal product differentiation is endogenously determined by firms' strategic investments in product innovation. Consumers seek variety and product innovation is more skill intensive than...

This paper studies the export decision of risk-averse firms in a model featuring aggregate uncertainty and no capital markets. Firms seeking to enter the foreign market face a sunk cost as well as a fixed participation cost every period they export. Using a calibrated version of the model, I...

We develop a simple framework to show the effects of trade cost reduction on unionized wage, employment and domestic welfare when a domestic firm strategically chooses the amount of formal in-house production and subcontracting to the informal sector. We show that a lower trade cost increases...

This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for situations with outward knowledge spillovers. Within this framework Samuelson's Act II effects may occur....

The centre of economic activities in Japan was once in western Japan. Since the mid-nineteenth century, however, economic activities within Japan have been continuously shifting towards the east side of the country including Tokyo. Conventional wisdom associates the end of the Tokugawa feudal...

This paper presents and tests a new model of multinational firms to explain a rich array of multinational behaviour. In contrast to most approaches, here the multinational faces costs to transferring its knowhow that are increasing in technological complexity. Costly technology transfer gives...

We examine the relationship between the degree of foreign ownership and performance of recipient firms, using of panel of 21,582 Chinese firms over the period 2000-2005. We find that joint-ventures perform better than wholly foreign owned and purely domestic firms. Although productivity and...

Using a unique dataset which provides information on the financial structure of start-up companies in the Chinese manufacturing industry, this paper documents robust evidence that access to formal financing channels has beneficial effects on firm size, these effects being more marked as we move...

The general acceleration of trade globalisation over the last decade - or a growing interdependence of economies via trade, production and financial market linkages - has engendered several macroeconomic implications for the euro area. This paper focuses on assessing the key impacts on the euro...