In a Ricardian model with CES preferences and general distributions of industry efficiencies, the sources of the welfare gains from trade can be precisely decomposed into a selection and a reallocation effect. The former is the change in average efficiency due to the selection of industries that...

Developing a three-sector and four-factor general equilibrium model, this paper offers an explanation of wage inequality in a vertically fragmented production structure typical of off-shore outsourcing to developing countries like China or India. The model characterizes a typical developing...

Today, more than 50 years after the Rome Treaty, the EU has made great strides in its’ economic integration and liberalization of movement of goods and people. International trade theory predicts deepening economic integration inside the European Union will increase regional trade and have...

This article seeks to survey the impact of a policy of opening to the trade balance and the competitive potential of the Tunisian economy by studying the impact of lower pricing and accompanying policies like a policy favorable exchange, growth in economic activity, the effort made in innovation...

Adam Smith is generally ignored as a trade theorist in textbooks of international economics because of the common belief that he only confirmed the rule of absolute advantages to explain structure of foreign trade. However, his vent-for-surplus approach may be interpreted as a pioneering study...

This paper studies the export performance of the Euro Area and the majority of the Euro Area countries through a Constant Market Share Analysis. We keep a special focus on the three largest countries: Germany, France and Italy. The Constant Market Share Analysis provides a breakdown of an...

Differences between domestic financial systems can lead to international trade. A country with relatively developed or decentralized financial systems will export innovative commodities while a country with less developed and centralized financial systems will export traditional commodities....

This paper attempts to cater the impact of changes in trade policies on the volume of a non-traded health care of a developing economy. In this article we have framed a hybrid type of three sector general equilibrium trade model, where first two sectors form a Heckscher-Ohlin nugget and the...