After matching a rich micro-level Iranian customs dataset with a macro-level cross-country database on Iranian diaspora stocks, we establish that diaspora matters for dynamics of Iranian exporters. We document the extent to which Iranian emigrants foster exports through both intensive and...

The trade balance is built directly into a factor proportions model of produc - tion. A wealth stockpile of the exported good is maintained, growing when the small open economy has a surplus and shrinking with a deficit. Income and prices determine consumption of exports and imports, while...

In recent years a number of papers have examined the impact of inflow of foreign capital on welfare in a trade theoretic model. Two fundamental ques - tions have been raised in this literature. First, what is the welfare impact of foreign capital inflow under a laissez faire regime? Second, what...

I. Introduction : In the Post Cold War Era, no other region has shown such a high level of economic dynamism as Northeast Asia. This can be ascribed to China’s economic rise and a rapid expansion of intra-regional economic exchanges and cooperation, i.e., there has been continued expansion and...

This paper investigates the welfare effects of an increase in location subsidy by constructing a general equilibrium linear space model, including transport costs and the cross-border ownership of equities. We assume a market structure with monopolistic competition in which entry is restricted...

The paper is to present a theory consistent with the stylised facts that employment and wages in the manufacturing sectors of the developed nations decline. It focuses on a world of multinational corporations where capital and technology are increasingly mobil.

This paper utilizes a specific factor model where rewards to labor and capi - tal, and employment are determined by efficient bargaining between entrepre - neurs and workers in each sector. Union threat points arise endogenously since workers’ outside opportunities in one sector depend on the...

Welfare effects of economic integration are often studied with aggregate data, and as such provide limited insights about the effects of trade pacts to individual economic agents in the free trade area. In this study a three-digit disaggregated commodity/ industry data grouped under the Standard...

This paper studies the income distribution implications of a fiscal expansion financed by foreign capital in a small open economy. Utilizing a multi-sector gen - eral equilibrium model, four results are derived for a stable equilibrium: (1) domestic private agents’ welfare may be reduced by...

Proponents of Asian monetary integration have always looked to Europe for inspiration. This paper reconsiders the cas in light of the eurozone crisis. I ask what aspects of the earlier consensus remain intact in the wake of the crisis and what aspects must now be rethought. Is there a danger of...