We present a model of vertical product differentiation and exit where a domestic and a foreign firm face fixed setup costs and quality-dependent costs of production and compete in quality and price in the domestic market. Quality-dependent costs are quadratic in qualities, but independent of the...

Using panel data from 39 countries, this paper examines the effects of financial deepening and openness to trade and foreign capital (FDI) on rural-urban inequality in Africa. Four estimations were performed - OLS pooled cross-section, GLS pooled cross section, fixed-effects model and an...

Using cross-sectional time series data from a large group of African countries, we examine the effects of income, institutions and social capital - with emphasis on the latter - on literacy and life expectancy. The empirical results confirm that income has a positive contribution. We also show...

Using cross-sectional time series data, we examine the effects of income, institutions and social capital on literacy and life expectancy. An improvement in institutions has positive influence on literacy but does not seem to affect life expectancy. In addition, countries with high income may...

Empirical evidence suggests that international ownership of local firms supports firm performance and growth through various channels such as financing, technology transfer, and improved access to international markets. This is particularly true for small and medium-sized enterprises (SMEs) that...

In a model of vertical product differentiation, duopolistic firms face quality-dependent costs and compete in quality and price in two segmented markets. Minimum quality standards, set according to the principle of Mutual Recognition, can be used to increase welfare. The results of the one-shot...