The main purpose of this study is to illustrate, with a simple two-factor (skilled and unskilled labor) model, how a time-saving improvement in business-services trade benefitting from differences in time zones can have an impact on national factor markets. In doing so, we intend to capture the...

Informal economy involving unrecorded, unregistered, extra legal activities employs majority of the workforce in the developing world. Such extra legal existence of informal production is facilitated through extortion by agents of political forces in power. Also extortion activities themselves...

This paper uses a Heckscher-Ohlin nugget framework with both traded and non-traded goods. Our motive is to investigate the effects of corruption and tax cut. We assume only the non-traded sector to be corruption affected. We argue that a fall in the degree of corruption surprisingly increases...

This paper develops a very simple model to explain the phenomenon of persistent unemployment even in an economy experiencing high output growth. Unemployment will also grow at a rate identical with other factors and sectors. The result is primarily triggered by pre-fixed minimum wage rate for...

Time Zone difference induced changes in trade and factor prices are relatively new concerns in trade literature. Here in this paper we formulate a trade model capturing the issue of Time Zone difference and communication technology revolution together to show that due to these developments...

This study attempts to provide with underlying theoretical explanations for exchange rate appreciation due to foreign capital inflow. We use an extended three sector specific factor model to explain why and how an inflow of foreign capital boosts the price of a nontradable good that helps...

Health standard of a region or economy significantly depends on environmental quality. And informal sector has a striking role for overall environmental quality as sometimes producers prefer not to produce in the formal sector as formal production calls for stringent environmental and other...

We develop a monopolistically competitive model for a closed economy without contract incompleteness. We show that if superior technology is not allowed to be transferred, integration would be the best mode of organization given that the transaction cost of intermediate input is sufficiently...

We construct a general equilibrium model and analyze the effectiveness of trade reform in a distorted economy where distortion exists in form of bureaucratic corruption that arises because of trade protection at the border. In this kleptocratic set up, intermediaries are employed in order to run...

In this paper my endeavor is to give you an idea about the upshot of a recessionary phase on the intermediation activity which is required for the survival of the informal fragment of the society. Informal part of the economy covers a large chunk of the total economic activities in any stylized...