This paper formulates a specific factor model of trade with skilled and unskilled workers as the specific and capital as the mobile factors. Production of goods is subject to intermediation and corruption. We then allow for international capital mobility and show that corruption as an activity...

This paper considers a two-period model of market entry with horizontally differentiated products and switching costs. Conditions that are conducive to a competitive environment in the second period are shown to yield a less competitive outcome in the first period. That is, when the marginal...

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms profits despite intensified competition.

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms' profits despite intesified competition.

This paper considers a two-period model of market entry with horizontally differentiated products and switching costs. Conditions that are conducive to a competitive environment in the second period are shown to yield a less competitive outcome in the first period. That is, when the marginal...

This note explores the determinants of trade patterns by extending a Chamberlinian-Ricardian monopolistic competition trade model to have a larger number of industries as did Dornbush, Fischer and Samuelson (1977). It will be shown that the degree of cross-country technical differences among...

Applying Atkeson and Kehoe's (2000) dynamic model to the dynamic Chamberlin-Heckscher-Ohlin approach, we examine the role of the timing of development (e.g., the removal of trade barriers) as a determinant of trade patterns.

This note explores the determinants of trade patterns by extending a Chamberlinian-Ricardian monopolistic competition trade model to have a larger number of industries as did Dornbush, Fischer and Samuelson (1977). It will be shown that the degree of cross-country technical differences among...

Using a two-country model of monopolistic competition with cross-country technical heterogeneity, this note explores the determinants of comparative advantage. It is shown that trade patterns are determined by a technology index, and that autarky relative prices do not serve as reliable...

Indirect network effects exist when the utility of consumers is increasing in the variety of complementary products available for use with an electronic hardware device. In this note, we examine how indirect network effects work as a determinant of trade patterns. For these purposes we construct...