We study a general equilibrium model of international trade with heterogeneous firms, where countries can strategically … international trade. We are interested in how trade liberalization affects this governmental incentive to invest in technology. In … strategically compete in their investment levels and increase their investments with higher trade openness. From a social …

We study international trade in a model where consumers have non-homothetic preferences and where household income …) countries but a threat of parallel trade restricts the scope of price discrimination between countries. The threat of parallel … trade allows differences in per capita incomes to have a strong impact on the extensive margin of trade, whereas differences …

case where the government is unbiased and only cares about welfare we find that falling trade barriers trigger the cross … qualitatively different effect. The foreign takeover would then only emerge in an intermediate range of trade costs. Once trade … national champion. -- Mergers ; takeovers ; national champions ; international trade ; trade …

This paper examines the linkages between the trade of goods and financial assets. Do both flows behave as complements … macroeconomics, the empirical evidence has remained relatively scarce so far, in particular for the Euro area where trade and … from 2002-2012, to test the so-called trade-finance nexus. Since theoretical models stress that both flows might be …