In this paper, we present a model where trade is motivated both by preference for variety and comparative advantages. We use this framework to analyze the welfare implications of trading blocs among countries with different endowments with and without transportation costs. In this framework, we...

La estructura y selección de temas de la presente publicación responde, en su mayor parte, a un diagnóstico de crecimiento para Guatemala realizado en 2007, donde se identificaron un conjunto de factores que afectan las posibilidades de desarrollo del país. A lo largo de estas páginas hay...

La estructura y selección de temas de la presente publicación responde, en su mayor parte, a un diagnóstico de crecimiento para Guatemala realizado en 2007, donde se identificaron un conjunto de factores que afectan las posibilidades de desarrollo del país. A lo largo de estas páginas hay...

Some key criteria in the optimal currency area literature are that countries should join a currency union if they have closer international trade links and more symmetric business cycles. However, both criteria are endogenous. Frankel and Rose (1998) find that trade intensity increases cycle...

The role of regional integration agreements as a determinant of the location of FDI has become an increasingly relevant issue for emerging economies. In Latin America, the largest effects are likely to be associated with the Free Trade Area of the Americas (FTAA). In this regard, there are a...

Export orientation of multinational corporations (MNCs) has seldom been incorporated in the analysis of spillovers from foreign direct investment (FDI). Also, until recently empirical research dealt mainly with intra-industry spillovers from FDI with restrictive treatment of inter-industry...