All preferential trading agreements (PTAs) short of a customs union use rules of origin (ROO) to prevent trade deflection. ROO raise production costs and create administrative costs. This paper argues that in the case of the recent wave of North-South PTAs, the presence of ROO virtually limits...

The purpose of this paper is to provide a theoretical and empirical background overview of the interactions between aid and foreign direct investment (FDI) policies, and trade flows and policies, taking the perspective of outcomes from the point of view of the recipient developing country. A...

This paper discusses the issue of regulatory protectionism and its implication for reciprocity and international bargaining on regulation. In a simple two way trade model a la Brander and Spencer, we take into account the three following features of regulatory measures: a) a regulation raises...

The 1980s was a period of external shocks for developing countries, and domestic macroeconomic imbalance and structural inefficiencies compounded the effects. But the performance of developing countries was not uniform. The authors devised a model for simulating the effects of terms of trade and...

We introduce a dynamic model that investigates the persistence and evolution of elite-dominated societies, where inherited political capital determines one's social standing. Our analysis highlights the critical role of the distribution of exit options in the evolution of political inclusiveness...

This paper develops a novel theory of capital mis-allocation within firms that stems from managers’ empire building and informational frictions within the organization. Introducing an internal capital market into a two-factor model of multi-segment firms, we show that international competition...

La volatilité des prix des matières premières sur le marché mondial génère un risque macroéconomique agrégé pour de nombreux pays en développement dont le revenu dépend crucialement de l'exportation de quelques produits agricoles. Les indicateurs de revenu des ménages devraient donc...

Les accords commerciaux préférentiels, à la différence des unions douanières, utilisent les règles d'origine (RO) afin de prévenir l'entrée de biens par le pays de la zone dont le droit de douane est le plus faible. Les règles d'origine augmentent les coûts de production et créent des...

This paper analyses empirically the impact of food aid on production, sales and purchases. We estimate the discrete choice and the level choice using the Ethiopian rural household survey. The panel dimension allows us to deal with food aid selection. Running a panel Tobit with sample selection...