Actual, and potential competition is a powerful source of discipline on the pricing behavior of firms with market power. The authors develop a simple model that shows that the effects of new entry, and import competition on industry price-cost markups, depend on country size. The authors...

As a result of trade reforms in the 1980s and 1990s Latin American and Caribbean countries became more open than at any time since World War II. However, these countries have recently begun to use antidumping measures as the new protection weapon of choice, as other barriers to trade have been...

The theoretical literature on trade follows two different approaches to explaining the endogenous formation of customs unions: 1) The terms-of-trade approach, in which integrating partners are willing to exploit terms-of-trade effects. Using the terms-of-trade approach, one concludes that...

The Pacific Rim members of the Asia Pacific Economic Cooperation (APEC) group have different views about the role each should play in fostering further trade liberalization. But at the November 1994 APEC meetings in Bogor they committed themselves to forming an APEC free trade area. The authors...

Reform of Ghana's macropolicies has helped to create a more favorable business environment and a"level playing field"for the private sector. At this point, instead of further refining its policies, Ghana should begin strengthening the institutions to implement them, and improving the channels of...

The authors explore the argument that trade between the Mercosur countries should be stimulated by preferential policies because of their geographic proximity. That is, that the Mercosur countries are candidates for natural integration. They find that, on average, transportation margins on trade...

Foreign firms often have a more educated workforce and pay higher wages than domestic firms. This does not necessarily imply that foreign ownership translates into higher demand for educated workers or higher wages, since foreign investment may be guided by unobservable firm characteristics...

This paper examines the implications for EMENA of EEC trade policy. Following an analysis of EEC trade agreements with EMENA countries, the paper has shown that EMENA's trade performance in the EEC has been far from uniform. While Turkey and Morocco, who carried out economic reforms, increased...

Tariffs on imports protect domestic producers and raise public revenue. The World Development Report 1987 finds that effective rates of protection to manufacturing in developing countries typically exceed 40 percent; while the World Development Report 1988 estimates that the importance of import...

Since the debt crisis, there has been increasing interest in the determinants of investment in developing countries. There is plentiful literature on the topic for industrial economies but existing studies on developing countries are scattered and few. The author examined those studies with the...