I consider the implications of recent research for R&D policy in developing countries. Typical new growth models, which assume free entry and no strategic behaviour by R&D producers, are less appropriate for policy guidance than strategic oligopoly models. But the latter have ambiguous...

Along with other prospective EMU members, the Irish government is now commited to the "Stability and Growth Pact", which proposes heavy penalties for countries whose deficit-to-GDP ratios breach certain stipulated conditions. Agreement on the broad outlines on the Pact of Dublin Summit of 13-14...

This paper compares adversarial with cooperative industrial and trade policies in a dynamic oligopoly game in which a home and foreign firm compete in R&D and output and, because of spillovers, each firm benefits from the other's R&D. When the government can commit to an export subsidy, such a...

On the basis of currency available information it seems reasonable to assume that European Monetary Union (EMU) will become a reality in the early years of the next century and that at least two of the EU's larger economies, Germany and France, will be participants. Unfortunately the same...

The authors address the question of whether the volume of manufacturing trade between Norther Ireland and the Republic of Ireland is more or less than might be expected in the light of international experience. They estimate a gravity equation for bilateral trade between 28 developed countries...

This paper analyses the welfare implication for a developing country of using union legalisation as a policy instrument to attract inwards foreign direct investment. While its presence may discourage a foreign multinational (MNE) from locating in the host country, unionisation is an important...

In this paper we examine optimal strategic trade p[olicy under oligopoly with many home and foreign firms when the firms have different levels of efficiency and where a trade-off exists between the subsidy bill and firms profits. The first-best policy involves a structure of firm specific export...

This paper investigates the effects of different degrees of wage setting centralisation on (1) the incentive of a MNE to locate in a host country, (2) the optimal level of investment it decides to commit to its foreign operation, and (3) the host country's welfare.

This paper examines the free-market and socially optimal outcomes in a dynamic oligopoly model with R&D spillovers. First-best optimal subsidies to R&D are higher when firms play strategically against each other but lower when they cooperate on R&D (at least with high spillovers) and when they...

This paper examines the responsiveness of real income and the balance of payments to external shocks in a small open economy. It is shown that tariff restrictions and wage rigidities tend to increase responsiveness and quota restrictions tend to reduce it. The implications for policy response...