Paper prepared for a conference in honor of Professor Ronald McKinnon, Stanford University, June 1, 2002. Professor Ronald McKinnon has many seminal and influential ideas in many diverse areas of economics, including international trade, international finance, economic development and the...

This paper sets out a political economy model of strategic exchange rates, focusing in the importance of external lobbying. Applying it for the recent history of the Japanese yen, we show that pressure from the U.S. trade negotiators contributed to an appreciation of the Japanese yen, as well as...

This article examines the determinants of U.S. and Japanese direct investment in China using the regional data set from 1991 to 1997. The level of local GDP affects significantly the inflow of investment from both sources. Policy variables are also found to have significant positive effects on...