This paper proposes a generalized panel data model with random effects and first-order spatially autocorrelated residuals that encompasses two previously suggested specifications. The first one is described in Anselin's (1988) book and the second one by Kapoor, Kelejian, and Prucha (2007). Our...

We develop a general equilibrium model of trade with multiple countries and industries in the spirit of Eaton and Kortum (2002) and Bernard, Eaton, Jensen, and Kortum (2003). We structurally estimate the parameters of the model and calibrate it to data on 33 OECD countries and one country that...

This paper presents an AR(1) model in the spirit of Hausman and Taylor zero differences between actual and in-sample predicted trade flows. Large systematic differences between observed and in-sample predicted trade flows only indicate model misspecification and econometric problems....

The envisaged EU enlargement will lead to a redirection of Structural and Cohesion Funds expenditures from current to new EU members. This redistribution of funds makes the accession countries even more attractive as a location of FDI. Using a logistic regressions approach, this paper shows that...

This paper analyzes the effects of distance as a common determinant of exports and FDI in a three factors New Trade Theory model assuming that distance affects both pure trade costs and plant set-up costs. Exports and FDI are not necessarily substitutes with respect to distance since the...

Switzerland is a prime location for both domestically owned as well as foreign‐owned multinational enterprises (MNEs). In this paper, we review the literature on MNE activity with respect to its main fundamental (non‐policy) drivers, the non‐fiscal consequences of MNEs for various economic...

German Abstract: In ihrer Studie «Der bilaterale Weg – eine ökonomische Bestandsaufnahme» untersucht die KOF in acht Kapiteln die wirtschaftlichen Auswirkungen der bilateralen Abkommen («Bilaterale») mit der Europäischen Union. Im Fokus steht dabei das Personenfreizügigkeitsabkommen...

Since about a decade, we have seen a surge in interest as well as in the use of services preferentialism and unilateral services regulations. This paper provides an economic explanation of services regulation and services preferentialism, including their interaction. The paper derives hypotheses...