This paper tests the hypothesis that industrial process innovations diffuse more slowly in developing countries than in industrialized countries. The focus of the analysis is on four innovations in the textile and steel industries, selected according to data availability. The analysis uses a...

It has been hypothesized that technical progress will erode the competitiveness of the manufactured exports of developing countries. The paper tests two assumptions underlying this hypothesis. First, limited technological competence might prevent developing countries from competing effectively...

Recent evidence suggests that regional economic integration provides an important stimulus not only to trade, but also to FDI. In contrast, the available theory on FDI does not yet provide empirically testable propositions on the effects of concurrent trade and investment liberalisation....

This econometric analysis investigates the impact of changes in sectoral valueadded prices and total factor productivity (TFP) on the equilibrium relative wage of low-skilled workers in eleven high-income countries. The key finding is that TFP growth mandated an increase in the unskilled wage,...

Recent evidence suggests that regional economic integration provides an important stimulus not only to trade, but also to FDI. In contrast, the available theory on FDI does not yet provide empirically testable propositions on the effects of concurrent trade and investment liberalisation....

This paper discusses the issue whether developing countries forego chances in world manufactured markets by protecting intermediate services against market entry of new suppliers. By scanning the empirical literature on effective rates of protection (ERP), the evidence is supportive. Yet, it...

This paper analyses the prospects and problems of a Transatlantic Free Trade Area (TAFTA) between the European Union and the United States. Possible economic reasons for the proposal of TAFFA such as the intensity of bilateral trade and a strong interdependence in investment flows and the...

The authors reveal that on the one hand China alleviates inward FDI with a clear focus on promoting "quality" FDI with potential positive impacts also on local firms without direct investment relationships with multinational enterprises. On the other hand China lowers Most Favored Nation (MFN)...