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Much of the recent empirical literature examining the New Economic Geography has focused on how access to markets impacts wages. In this article, we consider an alternative aspect of the theory by examining how access to markets affects industry growth. We develop a model relating the growth of...
Persistent link: https://www.econbiz.de/10010857244
This article specifies a supply and demand model of the labour market to examine the effects of North American Free Trade Agreement (NAFTA) on the US labour market. Regression results suggest that NAFTA decreased yearly unemployment growth by 4.4%. Equivalently, NAFTA brought a structural break...
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A specific factors model of 458 US manufacturing industries simulates the effects of eliminating manufacturing tariffs on unskilled and skilled wages. The model assumes constant elasticity substitution, industry-specific capital inputs, and mobile unskilled and skilled labor. Tariff elimination...
Persistent link: https://www.econbiz.de/10005024267
European Union policies effectively prohibit the production and consumption of genetically modified agricultural products. This paper examines the prohibition's effects on research and development, innovation, trade flows, and economic growth using a Heckscher-Ohlin-Samuelson trade model with a...
Persistent link: https://www.econbiz.de/10005695180
A two-country, two-sector new geography model where workers are imperfectly monitored is used to examine the relationship between falling trade costs and unemployment. It is shown that as trade costs fall over time the world naturally falls into an industrialized core and an agricultural...
Persistent link: https://www.econbiz.de/10005282328
Drawing on social capital theory and the international entrepreneurship literature, we develop hypotheses relating the structural, cognitive and relational aspects of the international network of SME CEOs to two internationalization outcomes - speed and performance. The study is based on a...
Persistent link: https://www.econbiz.de/10009201552