Why do investors hold such large positions in domestic equity when there are gains to be made from international diversification? This equity home bias puzzle has received considerable attention in the literature, with asymmetric information on domestic and foreign assets (whether by individual...

A multinational deciding on where to locate a foreign production facility may not be indifferent to the choice of location. Numerous variables such as production costs, market access, and local tax treatments will influence the decision as to where the plant is located. Another key variable in...

Has the formation of the European Monetary Union reduced the impact of national borders on cross-border market convergence? This paper extends Engel and Rogers (1996) well-known work on border effects to cities across Western Europe over the period 1995-2002 and finds two key results. First,...

Has the introduction of the Euro reduced the economic significance of national borders across the Euro Area? This article extends Engel and Rogers well known work on border effects to cities across Western Europe over the period 1995—2004. Although cross-border prices across the Euro Area...

Why is there international trade in newspapers? Why do even very small countries both import from and export to large nations? New trade models founded on transport costs and increasing returns fail to explain the high degree of bilateral trade in cultural goods like newspapers and periodicals....

A key feature of the regional economy in the Middle East and North Africa is the flow of migrants from resource poor, but labor abundant countries to the resource rich nations of the Persian Gulf. These workers send remittances back home in large quantities, in some cases exceeding the value of...