The study analyses the long run equilibrium and short run dynamic relationship among real exports, real imports and real income in India for the period 1951-52 to 1995-96. The long run relationship is examined using both the Engle-Granger (1987) two-step and the Johansen (1991)...

In the world trading system there has been an increase in unilateral trade and bilateral trade of differentiated products. However, the main trade theories have difficulties providing an explanation for unilateral trade. We show that profit seeking abroad by merchants or countries originates...

The paper studies the determinants of the factor content in the EU foreign trade. The theoretical model relaxes several important assumptions such as factor price equalisation and introduces technological differences in the standard Heckscher-Ohlin model. Based on the agricultural production and...

High- and medium-tech exports (hereafter complex exports), refl ecting a nation’s technological capabilities, can bring a nation larger benefi ts from international trade than simple exports. What determines the complex exports? While the topic is quite important, the quantitative analysis on...

As regards the thesis that the terms of trade between primary commodities and manufactured goods tended to deteriorate during the twentieth century, econometric analyses based on the Grilli-Yang series have not produced decisive results. Many of these have, however, one point in common: the...

Factors determining United States’ trade balance with Italy (NE) are examined, and tests for long run relationships performed. Results suggest the main determinant of NE is the output ratio, followed by the price ratio, real exchange rate, lending rate ratio, and the money supply ratio, which...

The rising importance of China as a major U.S. trading partner is the most important change in the international specialization pattern of the U.S. over the last decade. Using a multi-dimensional approach and a detailed dataset, we analyze the evolution over time of the trad relationship between...

This paper estimates a two equation system – an investment equation and a growth equation – that allows trade openness to affect growth directly via its impact on TFP growth, and indirectly via its impact on the investment rate. We find that domestic trade barriers depress investment and...

How are countries’ long run growth rates and employment levels affected by the international specialization of production? This paper presents an endogenous growth model where goods are produced in “modern” and “mature” sectors, which differ in the rate of knowledge accumulation and in...

In the period just after the Second World War, Italy experienced an increase in labour productivity bigger than the increase in real wages. The recurrent explanations of this phenomenon build on the weakness of labour trade unions due to a large “reserve industrial army”. With the passing of...