Showing 1 - 10 of 92
We consider the impact of preferential trade agreements (PTAs) on horizontal foreign direct investment (FDI) coming from parent countries outside the PTA. While easier access to a larger market due to a PTA may justify new FDI, preexisting investments may be rationalized as firms concentrate...
Persistent link: https://www.econbiz.de/10010840724
International Transport Services (ITS) play an important role in influencing international trade flows. This paper develops an analytical framework in which ITS costs are endogenously determined. It shows that ITS sector liberalization foster international trade very much the same way tariff...
Persistent link: https://www.econbiz.de/10009364800
Traditional CGE models with Armington assumption fail to capture the extensive margin of trade, thereby underestimate the trade and welfare effects of trade opening. To address this problem, this paper introduces the Melitz (2003) theoretical framework with firm heterogeneity and fixed exporting...
Persistent link: https://www.econbiz.de/10009415594
outsourcing part of production is a means used to obtain the market dominance in the host country. The market dominance could be … granted by the host country to a foreign firm as a reward for its transferring of technology through outsourcing. It is found …
Persistent link: https://www.econbiz.de/10009392018
This paper examines the effects of outsourcing on employment and unemployment and income distribution in an economy … engages in outsourcing and consequently experiences widespread unemployment. The main findings of this paper are as follows …: (i) If the outsourced factor is not produced domestically, outsourcing increases the rural wage rate (and the expected …
Persistent link: https://www.econbiz.de/10010840802
a more wage-oriented bargaining posture if their members are faced with a greater outsourcing threat. The model is able … to rationalise the empirically insignificant effects of outsourcing on wages. The findings are also consistent with the …
Persistent link: https://www.econbiz.de/10010840873
We evaluate the potential dynamic effects of MERCOSUR on the Argentinean economy. Two approaches, already used with other regional integration agreements, are applied for measuring medium and long-term effects. Special care has been taken in separating intra from extra zone effects. All...
Persistent link: https://www.econbiz.de/10009318898
The increase in global trade and the ongoing erosion of trade barriers makes the analysis of trade patterns one of the key areas in international economics. Much of the post-war expansion of trade took the form of intra-industry trade (IIT). This paper presents a simple geometric tool to analyse...
Persistent link: https://www.econbiz.de/10009364803
The paper studies the effects of regional integration on the incentives of mem - bers and non-members to undertake multilateral trade liberalization. Using a three- country political economy model with imperfect competion, it shows how regionalism can undermine support for multilateralism....
Persistent link: https://www.econbiz.de/10010840678
In this article, we develop an endogenous growth model to analyze the impact of knowledge spillovers, the disparity in initial endowments and production technologies on economic growth of two trading regions. We found that the growth rates of technology development of the two regions become...
Persistent link: https://www.econbiz.de/10010840683