Purpose: Unlike the common belief in the so-called “trickle-down effect,” trade-induced output growth in a small open economy does not necessarily improve the domestic welfare of the economy. The purpose of this paper is to analyze the conditions under which the trickle-down effect does not...

Purpose: The Korean manufacturing sector has undergone structural changes in a transition from labor- to capital-intensive industries. These changes seem to be relevant to the weakening of the export effect on employment that began in 1990. In light of the importance of exports in the Korean...

Purpose The purpose of this paper is to emphasize the importance of product quality in differentiated-products markets in determining the structure of competition among firms. Design/methodology/approach First, two distinct models of firm heterogeneity are considered as two possible structures...