type="main" <p>In this paper, we develop a location model of two multi-national firms (MNFs) with reverse imports and examine the consistency of MNFs' location shift in terms of social welfare in the foreign direct investment (FDI) source (home) country. If fixed costs are incurred in FDI, trade...</p>

This paper analyzes tax competition between a central city and a suburban city in a metropolitan area allowing migration. We compare the local government’s tax policies both in the closed economy and in the open economy. Then, we investigate how the agglomeration effects influence the...

We investigate government subsidy policies in which a home firm and a foreign firm choose to strategically set prices or quantities in a third market. We show that even though each firm can earn higher profits under Cournot competition than under Bertrand competition regardless of the nature of...

Employing the micro data for 1997--2004, we investigate the location decision of Korean-affiliated manufacturing investments in the United States. The conditional logit estimates confirm that although industry-specific Korean agglomeration and domestic agglomeration play an important role, the...

Many international trade theories and evidence suggest that trade in homogeneous and differentiated goods is different, and trade performance depends significantly on the extent of product differentiation. First this paper classifies the three countries' export products using Rauch's [Rauch, J....

Using income growth to explain trade flows has a long history in international trade. This paper examines the income elasticities for the categories of goods to be consistent with the theoretical implications, using the trade flows between China and Korea over the sample period of 1991-2008. The...