Small and medium-sized enterprises are a centrepiece of Europe?s economy. Due to their limited size and their generally lower creditworthiness, their access to financial market instruments is more limited than for large enterprises, which benefit from more elaborate Treasury operations,...

In the present paper, we augment the Fujita-Krugman-Venables (FKV) economic geography model by breaking the implied regional symmetry and by introducing a second factor of production, capital, in order to study the within-country regional effects of trade liberalization. In contrast to the...

In international trade literature, there is a common feature that the abolishment of barriers to trade leads to the expansion of trade flows. Most of the empirical studies aiming at simulation of welfare effects of trade liberalization explicitly make use of this direct tariff reduction - trade...

This paper analyzes the importance of taxes on corporate income and production-related tangible infrastructure as detfirminants of Foreign Direct Investment (FDI) in Central- and Eastern European Countries (CEECs). We operationalize taxes using effective average tax rates on the bilateral level...

We use comparable micro level panel data for 14 countries and a set of identically specified empirical models to investigate the relationship between exports and productivity. Our overall results are in line with the big picture that is by now familiar from the literature: Exporters are more...

The paper aims to verify the existence of the Flying Geese Model (FGM) in the case of inward FDI in Central European Countries (CECs) which are new EU member states; more precisely, to find out in what way and to what extent FDI has contributed to catching up, i.e. to the restructuring process...

The first aim of the paper was to explain a cross-sector differences in evolution of gross product of Slovenian manufacturing sectors in the period 1992-98 using different short and long-term factors. Results pointed out great importance of initial conditions (sector orientation to convertible...

South-Eastern European (SEE) countries have recently engaged in a regional integration process, through the establishment of free trade agreements between themselves and with the European Union (EU). This study evaluates the impact of this process on trade and firm performance. Three...

We develop a quantitative framework in which income inequality arises endogenously in response to productivity shocks. The framework accommodates sectoral inputoutput linkages, arbitrary elasticities of factors and intermediates, and heterogeneous workers that endogenously choose to supply their...