2024-03-29T05:19:42Z
https://mpra.ub.uni-muenchen.de/cgi/oai2
oai:mpra.ub.uni-muenchen.de:124
2019-09-28T04:51:03Z
7374617475733D707562
7375626A656374733D4C:4C31:4C3131
7375626A656374733D46:4631:463135
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/124/
Reductions in Real versus Tariff Barriers: The Effects on Industry Concentration
Schröder, Philipp J.H.
Jørgensen, Jan G.
L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms
F15 - Economic Integration
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Economic integration in Europe has had ambiguous effects on industry concentration. The literature has proposed various explanations of the empirical findings. The present paper provides an additional theoretical argument. We show that in a world of monopolistic competition, integration in it self (modelled as a reduction of trade barriers) generates opposing effects on industry concentration, depending on wether the barrier is a real (frictional) or a tariff cost. In particular, the Herfindahl index of industry concentration falls for a reduction in real costs, but rises for a reduction in tariff costs. The reason is that real barriers burn up resources, such that industry profitability is reduced, reducing entry, and resulting in fewer firms and higher concentration. Under a tariff barrier, the redistributed tariff revenue stabilises industry profitability, resulting in more firms and lower concentration.
2001
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/124/1/MPRA_paper_124.pdf
Schröder, Philipp J.H. and Jørgensen, Jan G. (2001): Reductions in Real versus Tariff Barriers: The Effects on Industry Concentration. Published in: Journal of Industry Competition and Trade , Vol. 3, No. 4 (2003): pp. 251-268.
en
oai:mpra.ub.uni-muenchen.de:126
2019-09-27T04:36:39Z
7374617475733D756E707562
7375626A656374733D46:4634:463431
7375626A656374733D46:4633:463331
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/126/
Fundamental equilibrium exchange rate for the Polish zloty
Rubaszek, Michal
F41 - Open Economy Macroeconomics
F31 - Foreign Exchange
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
In May 2004 Poland joined the European Union and is thereby committed to introduce the euro in the forthcoming years. The balance of costs and benefits of the euro adoption depends on the decision of the Polish and European authorities concerning the level of central parity in the ERM II, and subsequently the conversion rate of the zloty. In order to address the issue of an "ideal" level of the real exchange rate this paper proposes a model which is applied to estimate the level of the equilibrium of the zloty. The results indicate that at the end of 2004 the zloty was undervalued by 4.3%.
2005-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/126/1/MPRA_paper_126.pdf
Rubaszek, Michal (2005): Fundamental equilibrium exchange rate for the Polish zloty.
en
oai:mpra.ub.uni-muenchen.de:588
2019-09-27T17:31:09Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D50:5032:503237
7375626A656374733D46:4631:463134
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/588/
The Evolution of Ukrainian Economy: New Trade Theory Evidence
Konchyn, Vadym
F15 - Economic Integration
P27 - Performance and Prospects
F14 - Empirical Studies of Trade
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
As the experience of European transition countries shows, the opening-up of their economic systems for international competition and FDIs, deepening economic liberalization and integration, and on this basis, the realization of real convergence within the integration block lead to the increased role of New Trade Theory in explaining their international economic relations.
The processes of Ukraine's economic liberalization and approximation of its level of economic development to that of the EU-members should stipulate for transition of Ukrainian economy onto the dimension which explains industrial and trade relations through the prism of the New Trade Theory postulates coupled with Traditional Trade Theory principles.
This article explores the position of Ukraine in the intra-industry trade with its main trade partners and problems of measuring the homogeneity degree of Ukraine’s trade structure and the trade structures of its trade partners as well as its potential reciprocal demand within the regional EU and SEA integration blocks. The empirical analysis reveals that inasmuch as consumer preferences in Ukraine differ from those of its two SEA-partners (Russia and Kazakhstan), their disposition to intensify intra-regional trade relations with Ukraine in the future would be reduced. The SEA countries would rather prefer to expand their integrated export potential (for example, by forming big oligopolistic financial and industrial groups in the mining, metallurgy, heavy engineering, aircraft and space industries on the basis of intra-regional mergers and acquisitions, thus enjoying external economies of scale) and satisfy their individual importing wishes on the markets of third countries in compliance with the postulates of the Traditional Trade Theory. Nevertheless, it is believed that intra-industry trade of Ukraine would develop optimally under deepening of its industrial and trade relations with advanced industrial countries, which have objectively reached the highest level of international specialization and product differentiation. In view of the optimization of their reciprocal demand, advanced industrial countries would try to pull the Ukrainian economy towards European economic area in order to realize their trade and investment interests.
FDIs turned Ukraine into an increasingly export-oriented economy due to homogenous products. At the same time, the influence of FDIs on Ukrainian imports of differentiated goods tends to decrease significantly. This means that there still is no effect of increasing complementarity between imports and FDIs, which – under condition of transition – is responsible for structural market changes, saturation of domestic market with differentiated products and as a result for development of intra-industry trade.
2006-10-26
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/588/1/MPRA_paper_588.pdf
Konchyn, Vadym (2006): The Evolution of Ukrainian Economy: New Trade Theory Evidence.
en
oai:mpra.ub.uni-muenchen.de:1068
2019-10-04T19:27:44Z
7374617475733D756E707562
7375626A656374733D48:4835:483534
7375626A656374733D46:4631:463132
7375626A656374733D48:4832:483235
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1068/
Taxation, infrastructure, and endogenous trade costs in New Economic Geography
Gruber, Stefan
Marattin, Luigi
H54 - Infrastructures ; Other Public Investment and Capital Stock
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
H25 - Business Taxes and Subsidies
R12 - Size and Spatial Distributions of Regional Economic Activity
This paper presents a New Economic Geography model with distortionary taxation and endogenized trade costs. Tax revenues finance a public good, infrastructure. We show that the introduction of costly public investment in infrastructure increases agglomerative tendencies. With respect to the regions' sizes, in the periphery, the price-index for manufacturing goods decreases, whereas for the core, the price-index is rather high since the distortionary effect of taxes dominates. 'Free riding' - or, in terms of regional policy, externally funded infrastructure investment - is beneficial for the periphery, which can devote all its tax revenue to local demand support, generating a positive home market effect and driving the catch-up process.
2008-07-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1068/1/MPRA_paper_1068.pdf
Gruber, Stefan and Marattin, Luigi (2008): Taxation, infrastructure, and endogenous trade costs in New Economic Geography.
en
oai:mpra.ub.uni-muenchen.de:1095
2019-09-27T14:50:09Z
7374617475733D756E707562
7375626A656374733D4F:4F33:4F3333
7375626A656374733D46:4631:463132
7375626A656374733D44:4439:443931
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1095/
Trade, Envy and Growth: International Status Seeking in a Two-Country World
Valente, Simone
O33 - Technological Change: Choices and Consequences ; Diffusion Processes
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
D91 - Intertemporal Household Choice ; Life Cycle Models and Saving
This paper analyzes international status seeking in a two-country model of endogenous growth: utility of agents in developing countries is affected by consumption gaps with the average consumer in advanced economies. By distorting terms of trade, status seeking: (i) may compensate for structural gaps in physical productivity, inducing convergence; (ii) may revert the link between trade and growth; and (iii) induces divergence when interacting with technological catching-up. In particular, envy in conjunction with catching-up predicts switchovers of growth leadership: when the advanced economy is both status- and technology-leader in the short run, convergence in interest rates - e.g. due to R&D spillovers - implies that the initially lagging economy becomes growth-leader in the long run, due to permanent price distortions induced by envy.
2006-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1095/1/MPRA_paper_1095.pdf
Valente, Simone (2006): Trade, Envy and Growth: International Status Seeking in a Two-Country World.
en
oai:mpra.ub.uni-muenchen.de:1153
2019-10-02T04:44:18Z
7374617475733D756E707562
7375626A656374733D52:5230
7375626A656374733D46:4631:463132
7375626A656374733D52:5235:523538
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/1153/
The Spatial and Public Economics of Regions, a Theoretical and Empirical Survey
Candau, Fabien
R0 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R58 - Regional Development Planning and Policy
The aim of this paper is to survey what has been done by the New
Economic Geography (NEG) on a regional scale in order to answer the
three following questions: what are the predictions of the NEG concerning
the future of regions in the triad? Are these predictions robust? What can
be the optimal public policy on a regional and national scale in a world
characterized by agglomeration, trade liberalization and entrepreneurs�
mobility?
2006-05-31
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/1153/1/MPRA_paper_1153.pdf
Candau, Fabien (2006): The Spatial and Public Economics of Regions, a Theoretical and Empirical Survey.
en
oai:mpra.ub.uni-muenchen.de:2116
2019-09-26T09:10:22Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D4C:4C38
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/2116/
Services trade and domestic regulation
Kox, Henk L.M.
Nordås, Hildegunn Kyvik
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
L8 - Industry Studies: Services
F13 - Trade Policy ; International Trade Organizations
F14 - Empirical Studies of Trade
This paper argues that regulatory measures affect the fixed cost of entering a market as well as the variable costs of servicing that market. Moreover, differences in regulation among countries often imply that firms have to incur entry costs in every new market. Indicators of regulatory intensity and heterogeneity are introduced in a gravity model and their impact on market entry and subsequent trade flows estimated for total services, business services and financial services. It is found that regulatory heterogeneity has a relatively large negative impact on both market entry and subsequent trade flows. Further, regulatory barriers have a negative effect on the local services sectors’ export performance. Finally it is found that regulations that aims at correcting market failure can have a positive impact on trade. It is concluded that services trade liberalization and regulatory reforms are complementary in creating competitive services markets.
2007-02-14
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/2116/1/MPRA_paper_2116.pdf
Kox, Henk L.M. and Nordås, Hildegunn Kyvik (2007): Services trade and domestic regulation.
en
oai:mpra.ub.uni-muenchen.de:2463
2023-09-25T02:52:32Z
oai:mpra.ub.uni-muenchen.de:3446
2019-10-05T04:53:50Z
7374617475733D756E707562
7375626A656374733D4A:4A33:4A3330
7375626A656374733D46:4632:463232
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463136
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3446/
Trade and migration: a U-shaped transition in Eastern Europe
Cristobal, Adolfo
J30 - General
F22 - International Migration
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F16 - Trade and Labor Market Interactions
This paper proposes a 2-country 3-region economic geography model that can account for the most salient stylized facts experienced by Eastern European transition economies during the 1990s. In contrast to the existing literature, which has favored technological explanations, trade liberalization and factor mobility are the only driving forces. The model correctly predicts that in the first half of the decade trade liberalization led to divergence in GDP per capita, both between the West and the East and within the East. Consistent with the data, in the second half of the decade, internal labor mobility in the East reversed this process, and convergence became the dominant force. The model furthermore shows that the same U-shaped pattern applies to relative industrialization of West and East, although within the East the hinterland continued to lose industry throughout the decade.
2007-06-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3446/1/MPRA_paper_3446.pdf
Cristobal, Adolfo (2007): Trade and migration: a U-shaped transition in Eastern Europe.
en
oai:mpra.ub.uni-muenchen.de:3457
2019-09-27T19:52:07Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D43:4332:433233
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3457/
A fast, easy, and efficient estimator for the trade flux between heterogeneous economies
Sova, Robert
Sova, Anamaria
F15 - Economic Integration
C23 - Panel Data Models ; Spatio-temporal Models
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Compared to time-series or cross-section analyses, panel data allow us to control for individual specific characteristics - possibly unobservable - which may be correlated with certain explanatory variables in the specification of an economic relationship. Not controlling for unobservables leads to obtaining biased results. After controlling for such unobservable characteristics, we calculate efficient estimates of a trade flux equation between heterogeneous economies.
2007-03-05
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3457/1/MPRA_paper_3457.pdf
Sova, Robert and Sova, Anamaria (2007): A fast, easy, and efficient estimator for the trade flux between heterogeneous economies.
en
oai:mpra.ub.uni-muenchen.de:3702
2019-09-27T07:11:26Z
7374617475733D756E707562
7375626A656374733D44:4434:443433
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/3702/
Market distortions and public enterprise strategies in an international mixed oligopoly
Cornes, Richard
Sepahvand, Mehrdad
D43 - Oligopoly and Other Forms of Market Imperfection
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This study investigates the possible sources of distortions in an international mixed oligopoly. We extend the existing linear/quadratic model to a general framework and show that a public enterprise may either serve as a regulatory device or may itself create an additional level of distortion. Which of these is the case depends critically on the timing of firms output decisions. We then extend the basic quantity setting game to incorporate a preplay stage at which firms can choose the timing of action, rather than moving in an exogenously imposed sequence, in order to determine endogenously the equilibrium sequence of moves. We argue that the distortions associated with a public enterprise and the welfare gain of privatization found in earlier studies can be attributed to an arbitrary and unjustified modeling assumption concerning the order of play, rather than to public ownership.
2005
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/3702/1/MPRA_paper_3702.pdf
Cornes, Richard and Sepahvand, Mehrdad (2005): Market distortions and public enterprise strategies in an international mixed oligopoly.
en
oai:mpra.ub.uni-muenchen.de:4187
2019-10-02T07:37:21Z
7374617475733D756E707562
7375626A656374733D46:4635:463539
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463135
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4187/
Openness and Foreign Direct Investment: The Role of Free Trade Agreements in Latin America
Ponce, Aldo Fernando
F59 - Other
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F15 - Economic Integration
This paper sheds lights the on the performance of Latin American governments in attracting foreign direct investment (FDI) through trade policies, specifically by signing free trade agreements with other countries. The relationship between FDI and trade for Latin America has previously been analyzed. In these studies, the relationship between the degree of “openness” (imports plus exports divided by the domestic product) and FDI has not been conclusive. At the same time, the effect of specific trade policies on FDI flows has not been extensively studied. Some state policies on trade could produce a significant impact in attracting FDI. Specifically, through the implementation of several free trade agreements, several Latin American countries have been able to attract greater flows of foreign direct investment. The implementation of these free trade agreements was part of a more general plan of economic reforms that Latin American countries launched since the mid-1980s. The goals of these reforms were to adjust their economies and improve their competitiveness by liberalizing trade, privatizing, and deregulating their markets. Those countries that signed more free trade agreements – or signed them with the largest economies in the world –increased their effectiveness in attracting FDI. I test the impact of this policy on the behavior of FDI flows through a panel data model for seventeen Latin American countries and for the period ranging from 1985 to 2003.
2006-10-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4187/1/MPRA_paper_4187.pdf
Ponce, Aldo Fernando (2006): Openness and Foreign Direct Investment: The Role of Free Trade Agreements in Latin America.
en
oai:mpra.ub.uni-muenchen.de:4399
2019-10-10T10:03:54Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4399/
Indirect Network Effects, Trade Liberalization, and Excess Standardization
Iwasa, Kazumichi
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Indirect network effects exist when the utility of consumers is increasing in the variety of complementary software products available for use with an electronic hardware device. In this study, we examine how trade liberalization affects production structure in the presence of indirect network effects. For these purposes we construct a simple
two-country model of trade with two incompatible hardware technologies. It is shown that, given that both types of hardware exist before trade liberalization, liberalization may reduce the variety of hardware technology via intensified network effects. It is also shown that, contrary to the findings of previous studies, some consumers may become worse off as the result of trade. In other words, trade liberalization,which forms the basis for a greater variety of software products, may
work as a catalyst for excess hardware standardization.
2007
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4399/1/MPRA_paper_4399.pdf
Iwasa, Kazumichi and Kikuchi, Toru (2007): Indirect Network Effects, Trade Liberalization, and Excess Standardization.
en
oai:mpra.ub.uni-muenchen.de:4467
2019-09-28T16:37:56Z
7374617475733D756E707562
7375626A656374733D46:4631:463137
7375626A656374733D46:4631:463131
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4467/
Consequences of price volatility in evaluating the benefits of liberalisation
Boussard, Jean-Marc
F17 - Trade Forecasting and Simulation
F11 - Neoclassical Models of Trade
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Many computable general equilibrium models have been set up recently, in order to assess the benefits of trade liberalisation, especially in agriculture. Although figures magnitudes differ from one model to another, they cannot reach any other conclusion than positive benefits. On the other hand, historical experience shows that liberalisation, far from being a new idea, has been tried at several occasions during the two last centuries, repeatedly ending in crisis, and hasty return to various forms of protection. A possible explanation could be in the comparative static approach of most liberalisation proponents, and their neglect of dynamic aspects. Especially, because risk is necessarily tied with unfulfilled expectations, it should play a decisive role in modelling. A new model is developed along this line, showing the possibility of a chaotic price regime, which would prevent full liberalisation to be feasible.
2006-05-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4467/1/MPRA_paper_4467.pdf
Boussard, Jean-Marc (2006): Consequences of price volatility in evaluating the benefits of liberalisation.
en
oai:mpra.ub.uni-muenchen.de:4561
2020-01-11T05:01:01Z
oai:mpra.ub.uni-muenchen.de:4613
2019-09-27T16:37:05Z
7374617475733D696E7072657373
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4613/
Network Externalities and Comparative Advantage
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
In this article I examine how the network externalities of communications
activities and trading opportunities interact to determine the
structure of comparative advantage. These interactions are examined
by constructing a two-country, three-sector model of trade involving
a country-specific communications network sector. The role of the
connectivity of network providers, which allows users of a network to
communicate with users of another network, is also explored.
2007
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4613/1/MPRA_paper_4613.pdf
Kikuchi, Toru (2007): Network Externalities and Comparative Advantage. Forthcoming in: Bulletin of Economic Research
en
oai:mpra.ub.uni-muenchen.de:4936
2019-10-07T15:48:27Z
7374617475733D707562
7375626A656374733D46:4631:463134
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4936/
Evolución del Comercio Intraindustrial entre las regiones colombianas y la Comunidad Andina, 1990-2004: un análisis comparativo
Ana Isabel, Moreno
Hector Mauricio, Posada
F14 - Empirical Studies of Trade
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper measures and compares the Intraindustry Trade (IIT) levels between Colombia and its main economic regions with the Andean Community (AC). It finds that this trade has been overestimated in previous studies due to geographical and aggregation biases. The nature of IIT is predominantly vertical, where Colombia is found to produce higher quality varieties. As for the regions, the “center” provinces of each region explain the largest part of the sector composition of the most significant IIT flows with the AC. This result evidences the strong relationship between IIT and regional development, which is found to be more relevant than other factors such as geographical proximity.
2006-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4936/1/MPRA_paper_4936.pdf
Ana Isabel, Moreno and Hector Mauricio, Posada (2006): Evolución del Comercio Intraindustrial entre las regiones colombianas y la Comunidad Andina, 1990-2004: un análisis comparativo. Published in: Lecturas de Economía No. 66 (June 2007): pp. 83-118.
es
oai:mpra.ub.uni-muenchen.de:4981
2019-09-29T04:39:09Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/4981/
A Dynamic Chamberlin-Heckscher-Ohlin Model with Endogenous Time Preferences: A Note
Iwasa, Kazumichi
Kikuchi, Toru
Shimomura, Koji
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This note formulates a dynamic two-country (developed and developing
countries) Chamberlin-Heckscher-Ohlin model of trade with endogenous
time preferences a la Uzawa (1968). We examine the relationship between
initial factor endowment differences and trade patterns in the steady
state. In particular, to highlight the integration of developing countries
(e.g., China) into the world trading system, we concentrate on the case of
asymmetric size of two countries (in terms of population). It will be shown
that (i) given that the representative household in each country supplies
an equal amount of labor, only intra-industry trade occurs in the steady
state irrespective of differences in the number of representative households
and that (ii) the number of households being equal, the country with less
labor efficiency becomes the net exporter of the capital-intensive good.
2007-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/4981/1/MPRA_paper_4981.pdf
Iwasa, Kazumichi and Kikuchi, Toru and Shimomura, Koji (2007): A Dynamic Chamberlin-Heckscher-Ohlin Model with Endogenous Time Preferences: A Note.
en
oai:mpra.ub.uni-muenchen.de:5120
2019-09-29T00:20:36Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/5120/
Strategic Divisionalization, Product Differentiation and International Competition
Iwasa, Kazumichi
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
In this note we construct a simple international differentiated duopoly
model that involves a divisionalization decision. It will be shown that
the number of third market divisions of a parent firm with a cost
advantage is relatively large. The results imply that the cost competitiveness
of one country’s firm will be magnified through divisionalization
decisions.
2007
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/5120/1/MPRA_paper_5120.pdf
Iwasa, Kazumichi and Kikuchi, Toru (2007): Strategic Divisionalization, Product Differentiation and International Competition.
en
oai:mpra.ub.uni-muenchen.de:5804
2019-10-02T04:04:22Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/5804/
A Note on Trade Costs and Distance
Lawless, Martina
Whelan, Karl
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
One of the most famous and robust findings in international economics is that distance has a strong negative effect on trade. Bernard, Jensen, Redding, and Schott (2007) discuss how this can be decomposed into an effect due to the number of products and an effect due to average exports per product. Using US firm-level data, they show that distance has a strong negative effect on the number of products exported. However, they find that the intensive margin—average sales of individual products—is increasing
with distance. We show that this apparently puzzling finding is consistent with models featuring firm heterogeneity in productivity and fixed costs associated with exporting
to each market. We also show how evidence of this type can be used to derive new estimates of how distance affects fixed and variable trade costs and how these two costs
combine to generate the distance effect on trade.
2007-08
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/5804/1/MPRA_paper_5804.pdf
Lawless, Martina and Whelan, Karl (2007): A Note on Trade Costs and Distance.
en
oai:mpra.ub.uni-muenchen.de:6938
2019-09-30T06:12:47Z
7374617475733D707562
7375626A656374733D4F:4F31:4F3131
7375626A656374733D4F:4F34:4F3437
7375626A656374733D46:4631:463131
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/6938/
Trade and Sectoral Productivity
Fadinger, Harald
Fleiss, Pablo
O11 - Macroeconomic Analyses of Economic Development
O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence
F11 - Neoclassical Models of Trade
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Even though differences in sectoral total factor productivity are at the heart of Ricardian trade theory and many models of growth and development, very little is known about their size and their form. In this paper we try to fill this gap by using a Hybrid-Ricardo-Heckscher-Ohlin trade model and bilateral sectoral trade data to overcome the data problem that has limited previous studies, which have used input and output data to back out productivities, to a small number of OECD economies. We provide a comparable set of sectoral productivities for 24 manufacturing sectors and more than sixty countries at all stages of development. Our results show that TFP differences in manufacturing sectors between rich and poor countries are substantial and far more pronounced in skill and R\&D intensive sectors. We also apply our productivity estimates to test theories on development that have implications for the patterns of sectoral productivities across countries.
2008-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/6938/1/MPRA_paper_6938.pdf
Fadinger, Harald and Fleiss, Pablo (2008): Trade and Sectoral Productivity. Published in: ECORE Discussion Paper No. 2008/4 (January 2008)
en
oai:mpra.ub.uni-muenchen.de:7202
2017-12-22T03:59:09Z
oai:mpra.ub.uni-muenchen.de:7397
2019-10-03T04:44:27Z
7374617475733D696E7072657373
7375626A656374733D46:4631:463135
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/7397/
Fixed Export Cost heterogeneity, Trade and Welfare
Schröder, Philipp J.H.
Jørgensen, Jan G.
F15 - Economic Integration
F13 - Trade Policy ; International Trade Organizations
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This paper presents a new and simple heterogeneous-firms specification. We develop a symmetric two-country intra-industry trade model where firms are of two different marginal costs types and where fixed export costs are heterogeneous across firms. This model traces many of the stylized facts of international trade. However, we find that with heterogeneous fixed export costs there
exists a positive bilateral tariff that maximizes national and world welfare.
2007
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/7397/1/MPRA_paper_7397.pdf
Schröder, Philipp J.H. and Jørgensen, Jan G. (2007): Fixed Export Cost heterogeneity, Trade and Welfare. Forthcoming in:
en
oai:mpra.ub.uni-muenchen.de:7441
2013-07-02T12:25:59Z
oai:mpra.ub.uni-muenchen.de:7612
2021-06-25T05:15:58Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/7612/
U.S. Intra-Firm International Trade
Khan, Haider
Akram, Tanweer
Holladay, J. Scott
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
Intra-firm trade is an important component of United States’ international trade with the rest of the world. The stylized facts about U.S. intra-firm trade reveal some interesting patterns. Intra-firm trade is increasing with newly developed countries particularly in Asia and Eastern Europe, there is an intra-firm trade deficit that adds to the overall trade deficit and intra-firm trade with China is a large and growing part of overall intra-firm trade. These facts are consistent with a horizontal multinational trade model. The high share of intra-firm transactions in international trade has implications for the trade deficit and tax policy
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/7612/1/MPRA_paper_7612.pdf
Khan, Haider and Akram, Tanweer and Holladay, J. Scott (2008): U.S. Intra-Firm International Trade.
en
oai:mpra.ub.uni-muenchen.de:7815
2019-09-27T04:36:35Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/7815/
Competing Communications Networks and International Trade
Fukushima, Marcelo
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper investigates the effects of competing communication networks
on trade patterns in a Chamberlinian-Ricardian model of monopolistically
competitive firms with a continuum of industries that require communication
services in production. We conclude that intraindustry trade between different
networks is determined by the relative size of networks and technological
differences, and that a network will not have an incentive to expand indefi-
nitely, despite network externalities.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/7815/1/MPRA_paper_7815.pdf
Fukushima, Marcelo and Kikuchi, Toru (2008): Competing Communications Networks and International Trade.
en
oai:mpra.ub.uni-muenchen.de:7913
2017-12-22T04:31:34Z
oai:mpra.ub.uni-muenchen.de:7925
2017-12-22T04:32:38Z
oai:mpra.ub.uni-muenchen.de:8093
2019-09-26T10:37:56Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8093/
Switching Costs and the foreign Firm's Entry
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper considers a two-period model of market entry with
homogeneous products and switching costs. It is shown that the
pro-competitive effect of a foreign firm's entry (i.e., unilateral trade
liberalization) emerges before the entry. Also, conditions that are
conducive to a competitive environment in the second-period are shown to
yield a less competitive outcome in the first-period. That is, when the
marginal cost of the foreign entrant is relatively low, the first-period
output of a domestic monopolist is relatively low as well.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8093/1/MPRA_paper_8093.pdf
Kikuchi, Toru (2008): Switching Costs and the foreign Firm's Entry.
en
oai:mpra.ub.uni-muenchen.de:8126
2019-09-27T23:28:32Z
7374617475733D707562
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3139
7375626A656374733D4F:4F31:4F3134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8126/
Global models and North-South relations
Chichilnisky, Graciela
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O19 - International Linkages to Development ; Role of International Organizations
O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology
Global modeling has evolved remarkably in the last two decades. Such evolution led it to perform today's role as an experimental laboratory for the social sciences, and particularly for applications to policy planning. Two of the most interesting applications to policy are to resource economics and to economic models of North-South relations i.e., the the relationships between industrial and developing countries. Examples of North-South policy issues instigated by global modeling are developed in the context of a United Nations Model of Technology and North South Relations which evolved from the Bariloche global model. Further applications of global modeling are then outlined.
1990
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8126/1/MPRA_paper_8126.pdf
Chichilnisky, Graciela (1990): Global models and North-South relations. Published in: International Political Science Review , Vol. 11, No. No. 2 (1990): pp. 177-185.
en
oai:mpra.ub.uni-muenchen.de:8199
2019-09-27T07:58:05Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8199/
Comparative Advantage and Trade Liberalization in a Chamberlinian-Ricardian Model
Kikuchi, Toru
Shimomua, Koji
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns. It takes the work of Kikuchi et al.(2008)'s Chamberlinian-Ricardian model as its point of departure, and extends the analysis to include both a continuum of industries, as did Dornbusch et al. (1977), and iceberg transport costs. It will be shown that trade liberalization drastically changes the nature of trade patterns,
particularly the emergence of intra-industry trade.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8199/1/MPRA_paper_8199.pdf
Kikuchi, Toru and Shimomua, Koji (2008): Comparative Advantage and Trade Liberalization in a Chamberlinian-Ricardian Model.
en
oai:mpra.ub.uni-muenchen.de:8359
2019-09-26T09:52:19Z
7374617475733D707562
7375626A656374733D46:4631:463138
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3139
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8359/
Traditional comparative advantages vs. economies of scale: NAFTA and GATT
Chichilnisky, Graciela
F18 - Trade and Environment
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O19 - International Linkages to Development ; Role of International Organizations
Regional free trade zones have been unexpectedly successful in the last decade. Since 1980 the European Community enlarged significantly its membership and its scope. It now includes southern European countries, and market-integrating features allowing goods, people, services and capital to flow freely around an area accounting for about one fourth of world economic output. Based on economies of scale - we find a condition that determine whether trading blocks Such as NAFTA and the EU are complementary with and encourage global free trade - when this condition fails, instead, trading blocks undermine free trade.
It is the purpose of this paper to re-examine the positive and negative aspects of trading blocs as they relate to gains from free trade. The paper is primarily a discussion of conceptual issues, although it is based on facts and on particular cases which are of interest to the trade liberalization in the Americas.
We take a somewhat different approach to a familiar issue. Rather than asking the standard question of whether regional blocs help or hinder global free trade, we ask a more detailed question: what type of customs union is likely to lead to a trade war between the blocs, and what type of customs union is, instead, likely to lead to expanded global trade. In practical terms: what type of trade policies within the blocs will provide economic incentives for expanding free trade.
We shall compare the impact on the world economy of free trade blocs which are organized around two alternative principles: one is traditional comparative advantages, the other is economies of scale. The aim is to determine how the patterns of trade inside the blocs determine the trade relations among the blocs.
1993
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8359/1/MPRA_paper_8359.pdf
Chichilnisky, Graciela (1993): Traditional comparative advantages vs. economies of scale: NAFTA and GATT. Published in: Rivista Di Politica Economica (April 1993): pp. 161-197.
en
oai:mpra.ub.uni-muenchen.de:8360
2019-09-27T03:35:09Z
7374617475733D707562
7375626A656374733D46:4631:463138
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3139
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8360/
Traditional comparative advantage vs. increasing returns to scale: NAFTA and the GATT
Chichilnisky, Graciela
F18 - Trade and Environment
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O19 - International Linkages to Development ; Role of International Organizations
Regional free trade zones have been unexpectedly successful in the last decade. Since 1980 the European Community enlarged significantly its membership and its scope. It now includes southern European countries, and market-integrating features allowing goods, people, services and capital to flow freely around an area accounting for about one fourth of world economic output. Based on economies of scale - we find a condition that determine whether trading blocks Such as NAFTA and the EU are complementary with and encourage global free trade - when this condition fails, instead, trading blocks undermine free trade.
It is the purpose of this paper to re-examine the positive and negative aspects of trading blocs as they relate to gains from free trade. The paper is primarily a discussion of conceptual issues, although it is based on facts and on particular cases which are of interest to the trade liberalization in the Americas.
We take a somewhat different approach to a familiar issue. Rather than asking the standard question of whether regional blocs help or hinder global free trade, we ask a more detailed question: what type of customs union is likely to lead to a trade war between the blocs, and what type of customs union is, instead, likely to lead to expanded global trade. In practical terms: what type of trade policies within the blocs will provide economic incentives for expanding free trade.
We shall compare the impact on the world economy of free trade blocs which are organized around two alternative principles: one is traditional comparative advantages, the other is economies of scale. The aim is to determine how the patterns of trade inside the blocs determine the trade relations among the blocs.
1994
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8360/1/MPRA_paper_8360.pdf
Chichilnisky, Graciela (1994): Traditional comparative advantage vs. increasing returns to scale: NAFTA and the GATT. Published in: International Problems of Economic Interdependence (1994): pp. 161-197.
en
oai:mpra.ub.uni-muenchen.de:8393
2019-10-08T00:01:11Z
7374617475733D707562
7375626A656374733D46:4631:463138
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3139
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8393/
Strategies for trade liberalization in the Americas
Chichilnisky, Graciela
F18 - Trade and Environment
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O19 - International Linkages to Development ; Role of International Organizations
Regional free trade zones have been unexpectedly successful in the last decade. Since 1980 the European Community enlarged significantly its membership and its scope. It now includes southern European countries, and market-integrating features allowing goods, people, services and capital to flow freely around an area accounting for about one fourth of world economic output. Based on economies of scale - we find a condition that determine whether trading blocks Such as NAFTA and the EU are complementary with and encourage global free trade - when this condition fails, instead, trading blocks undermine free trade.
It is the purpose of this paper to re-examine the positive and negative aspects of trading blocs as they relate to gains from free trade. The paper is primarily a discussion of conceptual issues, although it is based on facts and on particular cases which are of interest to the trade liberalization in the Americas.
We take a somewhat different approach to a familiar issue. Rather than asking the standard question of whether regional blocs help or hinder global free trade, we ask a more detailed question: what type of customs union is likely to lead to a trade war between the blocs, and what type of customs union is, instead, likely to lead to expanded global trade. In practical terms: what type of trade policies within the blocs will provide economic incentives for expanding free trade.
We shall compare the impact on the world economy of free trade blocs which are organized around two alternative principles: one is traditional comparative advantages, the other is economies of scale. The aim is to determine how the patterns of trade inside the blocs determine the trade relations among the blocs.
1995
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8393/1/MPRA_paper_8393.pdf
Chichilnisky, Graciela (1995): Strategies for trade liberalization in the Americas. Published in: Trade Liberalization in the Western Hemisphere (1995): pp. 165-188.
en
oai:mpra.ub.uni-muenchen.de:8533
2019-09-27T04:47:54Z
7374617475733D707562
7375626A656374733D43:4331:433133
7375626A656374733D46:4631:463130
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8533/
Impact du commerce extérieur sur la productivité au sein des secteurs en Tunisie : cas de l’industrie manufacturière
Derbel, Hatem
Abdelkafi, Rami
Chkir, Ali
C13 - Estimation: General
F10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
This paper provides an empirical evidence of the impact of foreign trade on the sectorial productivity for the Tunisian manufacturer sector. The objective is to show that the insufficiency of the traditional theory in the explanation of the impact of the international trade on the labour market can be explained by the presence of an intrasectorel component that results from the reaction of firms facing the competition. Using recent unit root procedures applied to panel data regressions (Im, Pesaran & Shin’s (1997) and coïntegration tests (Pedroni’s (1999)), the results exhibit a positive impact of value added and trade on the productivity of the manufacturer sector. The survey by sector shows that the value added acts positively on all sectors whereas for trade a positive and statistically significant effect exist only for the ICH and IMD sectors.
2007-03
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8533/1/MPRA_paper_8533.pdf
Derbel, Hatem and Abdelkafi, Rami and Chkir, Ali (2007): Impact du commerce extérieur sur la productivité au sein des secteurs en Tunisie : cas de l’industrie manufacturière. Published in: Ouvrage « effets et enjeux de l’ouverture sur l’espace méditerranéen » No. Octobre 2007 (October 2007)
fr
oai:mpra.ub.uni-muenchen.de:8662
2019-09-29T19:45:52Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8662/
Indirect Network Effects and the Impact of Trade Liberalization: A Note
Kazumichi, Iwasa
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Indirect network effects exist when the utility of consumers is increasing in the variety of complementary software products available for use with an electronic hardware device. In this note, we examine how trade liberalization affects production structure in the presence
of indirect network effects. For these purposes we construct a simple two-country model of trade with two incompatible hardware technologies. It is shown that, given that both types of hardware exist before
trade liberalization, liberalization may reduce the variety of hardware technology via intensified network effects. It is also shown that, contrary to the findings of previous studies, some consumers may become worse off as the result of trade. In other words, trade liberalization, which forms the basis for a greater variety of software products, may
work as a catalyst for Pareto inferior outcomes.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8662/1/MPRA_paper_8662.pdf
Kazumichi, Iwasa and Kikuchi, Toru (2008): Indirect Network Effects and the Impact of Trade Liberalization: A Note.
en
oai:mpra.ub.uni-muenchen.de:8802
2019-09-28T12:50:51Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8802/
Competing Industrial Standards and the Impact of Trade Liberalization
Kikuchi, Toru
Iwasa, Kazumichi
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which consists of
differentiated products. A product can be used only in combination with other products based on the same industrial standard. We examine the impact of trade liberalization (i.e., a decline in trade costs) on consumers' choice of a standard. It will be shown that the degree of indirect network effects, captured with substitution between differentiated products, plays an important role as a determinant of the impact of trade liberalization.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8802/1/MPRA_paper_8802.pdf
Kikuchi, Toru and Iwasa, Kazumichi (2008): Competing Industrial Standards and the Impact of Trade Liberalization.
en
oai:mpra.ub.uni-muenchen.de:8858
2019-09-29T04:32:08Z
7374617475733D756E707562
7375626A656374733D46:4635:463539
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463135
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/8858/
Openness and Foreign Direct Investment: The Role of Free Trade Agreements in Latin America
Ponce, Aldo Fernando
F59 - Other
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F15 - Economic Integration
This paper sheds lights the on the performance of Latin American governments in attracting foreign direct investment (FDI) through trade policies -- specifically by signing free trade agreements with other countries. The relationship between FDI and trade for Latin America has previously been analyzed. According to these studies, the relationship between the degree of “openness” (imports plus exports divided by the domestic product) and FDI has not been conclusive. At the same time, the effect of specific trade policies on the behavior of FDI inflows has not been extensively studied. Some state policies on trade could produce a significant impact in attracting FDI inflows. Specifically, through the implementation of several free trade agreements, several Latin American countries have been able to attract greater inflows of foreign direct investment. The implementation of these free trade agreements was part of a more general plan of economic reforms that Latin American countries launched since the mid-1980s. Those countries that signed more free trade agreements – or signed them with the largest economies in the world –increased their effectiveness in attracting FDI inflows. I test the impact of this policy on the behavior of FDI inflows through a panel data model (with feasible generalized least squares estimators) for seventeen Latin American countries and for the period ranging from 1985 to 2003.
2006-10-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/8858/1/MPRA_paper_8858.pdf
Ponce, Aldo Fernando (2006): Openness and Foreign Direct Investment: The Role of Free Trade Agreements in Latin America.
en
oai:mpra.ub.uni-muenchen.de:9160
2019-10-05T17:58:55Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/9160/
Distribution Costs, International Trade and Industrial Location
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The purpose of this study is to illustrate, with a simple two-country, two-good, two-factor model, how a technological/regulational improvement in one country's distribution sector can affect firms' location decisions and the nature of the trading equilibrium. It is shown
that, through improvements in distribution sector, one country might divert high-tech industries to another country. This effect reduces the incentive to improve distribution sector lower.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/9160/1/MPRA_paper_9160.pdf
Kikuchi, Toru (2008): Distribution Costs, International Trade and Industrial Location.
en
oai:mpra.ub.uni-muenchen.de:9315
2019-10-01T14:56:28Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/9315/
Software Provision and the Impact of Market Integration: A Note
Iwasa, Kazumichi
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Both deeper market integration and advances in digital technology have driven particularly large decreases in the costs of inter-market software provision. In this note, we first explain the mechanism of how trade costs in
uence the software provision decision of software
firms. Then, we investigated the transformation of production/trade patterns given gradually decreasing trade costs for software products.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/9315/1/MPRA_paper_9315.pdf
Iwasa, Kazumichi and Kikuchi, Toru (2008): Software Provision and the Impact of Market Integration: A Note.
en
oai:mpra.ub.uni-muenchen.de:9573
2019-09-30T21:19:03Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/9573/
A Simple Model of Trade with Heterogeneous Firms and Trade Policy
Fukushima, Marcelo
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper builds a Ricardian-Chamberlinian two-country model with heterogeneous firms in a monopolistically competitive sector in which every new entrant faces increasing fixed costs of production. There are efficiency
gaps between countries in marginal and fixed costs and a country unilaterally imposes an import tariff. It is shown that an increase in tariff increases the number of firms of the tariff imposing country while decreases the number
of firms of the tariff-imposed country, possibly reverting the position of net exporter of varieties. A tariff is detrimental to the tariff-imposed country. A small tariff may be beneficial to the tariff-imposing country.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/9573/1/MPRA_paper_9573.pdf
Fukushima, Marcelo and Kikuchi, Toru (2008): A Simple Model of Trade with Heterogeneous Firms and Trade Policy.
en
oai:mpra.ub.uni-muenchen.de:9574
2019-10-05T17:36:14Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/9574/
A Simple Model of Service Trade with Time Zone Differences
Kikuchi, Toru
Iwasa, Kazumichi
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This note proposes a two-country monopolistic competition model of service trade that captures the role of time zone differences as a determinant of trade patterns. It is shown that the utilization of time zone differences induces drastic change in trade patterns: Due to taking advantage of time zone differences, service firms learve larger countries for smaller countries.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/9574/1/MPRA_paper_9574.pdf
Kikuchi, Toru and Iwasa, Kazumichi (2008): A Simple Model of Service Trade with Time Zone Differences.
en
oai:mpra.ub.uni-muenchen.de:9780
2019-10-28T19:06:25Z
oai:mpra.ub.uni-muenchen.de:10415
2019-10-01T08:31:14Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/10415/
Footloose Capital and Locational Advantage of a Hub
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The purpose of this study is to illustrate, with a simple three-region (located on a line), two-good (homogeneous good/differentiated high-tech products), two-factor (labor/``footloose'' capital) model, how falling transport costs can affect firms' location decisions and trade structure. It is shown that the locational advantage of a central hub is magnified via firms' location decisions.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/10415/1/MPRA_paper_10415.pdf
Kikuchi, Toru (2008): Footloose Capital and Locational Advantage of a Hub.
en
oai:mpra.ub.uni-muenchen.de:10982
2019-09-30T16:51:37Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/10982/
Software Provision and the Impact of Market Integration
Iwasa, Kazumichi
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Both deeper market integration and advances in digital technology
have driven particularly large decreases in the costs of intermarket
software provision. In this note, we first explain the mechanism of
how trade costs in
uence the software provision decisions of software
firms. Then, we investigate the transformation of production/trade
patterns given gradually decreasing trade costs for software products.
It is shown that, if two incompatible types of hardware exist, deeper market integration may reduce the variety of hardware technologies.
2008
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/10982/1/MPRA_paper_10982.pdf
Iwasa, Kazumichi and Kikuchi, Toru (2008): Software Provision and the Impact of Market Integration.
en
oai:mpra.ub.uni-muenchen.de:11038
2019-09-26T23:24:16Z
7374617475733D707562
7375626A656374733D4E:4E36:4E3633
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463134
7375626A656374733D4A:4A31:4A3131
7375626A656374733D4C:4C37:4C3739
7375626A656374733D44:4432:443233
7375626A656374733D4C:4C31:4C3134
7375626A656374733D45:4533:453332
7375626A656374733D4E:4E37:4E3733
7375626A656374733D4A:4A32:4A3231
7375626A656374733D4C:4C32:4C3233
7375626A656374733D48:4832:483235
7375626A656374733D46:4631:463132
7375626A656374733D4C:4C39:4C3931
7375626A656374733D44:4434:443433
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/11038/
I panni di lana: Nascita, espansione e declino dell’industria tessile di lana italiana, 1100-1730
Munro, John H.
N63 - Europe: Pre-1913
F13 - Trade Policy ; International Trade Organizations
F14 - Empirical Studies of Trade
J11 - Demographic Trends, Macroeconomic Effects, and Forecasts
L79 - Other
D23 - Organizational Behavior ; Transaction Costs ; Property Rights
L14 - Transactional Relationships ; Contracts and Reputation ; Networks
E32 - Business Fluctuations ; Cycles
N73 - Europe: Pre-1913
J21 - Labor Force and Employment, Size, and Structure
L23 - Organization of Production
H25 - Business Taxes and Subsidies
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
L91 - Transportation: General
D43 - Oligopoly and Other Forms of Market Imperfection
This study of the Italian wool-based textile industries (woollens, worsteds, and serges) seeks to examine its rise, expansion, and ultimate decline, over a period of five centuries (from ca. 1200 to ca. 1730) in the context of both international competition and economic conjoncture, in the context of the major macro-economic and demographic changes that the European economy experienced during these five centuries. The story commences during the so-called ‘Commercial Revolution’ era of the thirteenth-century when the Franco-Flemish cloth industries of north-west European dominated the international markets in a very wide range of these textiles, even in the Mediterranean basin. From the 1290s, and then into the better know period of the Hundred Years’ War (1337-1453) the European economy suffered from the ravages of ever more widespread and debilitating warfare, throughout the Mediterranean basin and western Europe, and then from various factors, including plagues, that led to serious depopulation. The consequences led to a severe rise in transportation and transaction costs that gravely undermined the profitability of long-distance trade in cheaper textiles. That, in turn forced most textile manufacturers dependent on long-distance trade, and especially those who had operated as price-takers, to re-orient their export-based production to far higher priced, indeed luxury textiles, which could better sustain the burden of rising transactions costs, especially in acting as ‘price-makers’ engaged in monopolistic competition. That industrial-commercial transformation can be seen in the textile industries of northern France, the Low Countries, and England; but also those in Catalonia and above all in Italy: principally Tuscany and Lombardy. In so far as warfare and rising transaction costs limited the importation of even luxury textiles from north-west Europe, the Italian cloth industries thereby gained a far larger share of Mediterranean markets.
This study focuses in particular on the ensuring history of the Florentine woollen cloth industry in the later Middle Ages. One price that all of these luxury-oriented cloth industries had to pay was steeply rising tax burdens on exported English wools; for the prime determinant of luxury quality in these textiles was the use of the finer grade English wools, the best in the world, until the development (through breeding and management) of Spanish merino wools, which finally succeeded in rivalling and then surpassing the English by the later sixteenth century. By the sixteenth century, with a reduction in European warfare and with renewed population growth, substantial economic growth, and significant innovations in transportation, transactions costs fell, and fell enough to make long-distance trade in cheaper textiles once more profitable; and that is reflected in product changes in the Florentine textile industry, which increasingly used Spanish merino wools in place of the English. But the most important events in the history of the Italian textile industries was the sudden rise of the Venetian cloth industry from the early to mid-sixteenth century, reaching a peak in the early seventeenth century, and then experiencing an equally rapid decline, in the famous of English textile competition, by the agency of the new Levant Company, which gained major advantages over the Italians in the large Ottoman Empire. The study concludes by examining the nature of those English advantages, which lay far more in the commercial (and transportation sphere) than in the industrial sphere, in terms of both traditional heavy weight woollens (made from Spanish wools) and the lighter, coarser, and cheaper fabrics of the English New Draperies (benefiting from a transformation in English wool production, from the Tudor-Stuart Enclosures). In sum: a study of comparative advantage in five centuries of international trade, in wool-based textiles, in terms of transaction costs, inputs (wools), and commercial organization.
2005-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/11038/1/MPRA_paper_11038.pdf
Munro, John H. (2005): I panni di lana: Nascita, espansione e declino dell’industria tessile di lana italiana, 1100-1730. Published in: Il Rinascimento italiano et l’Europa, vol. IV: Commercio e cultura mercantile , Vol. 4, No. 1 (2007): pp. 105-141.
it
oai:mpra.ub.uni-muenchen.de:11355
2019-09-27T15:51:17Z
7374617475733D756E707562
7375626A656374733D4F:4F32:4F3234
7375626A656374733D46:4631:463132
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/11355/
Capital liberalization, industrial agglomeration and wage inequality
Li, Yao
O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R12 - Size and Spatial Distributions of Regional Economic Activity
This paper sets up a new economic geography model with diminishing marginal returns and examines the effect of capital liberalization on industrial agglomeration and wage inequality. The simulation results indicate that for the country with strict capital controls, capital liberalization can help reduce wage difference between countries in both nominal and real terms. It is also shown that when both comparative advantage and agglomeration are in effect, low trading costs does not necessarily cause the catastrophic agglomeration in the country with the larger market as most other NEG models predict.
2007-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/11355/1/MPRA_paper_11355.pdf
Li, Yao (2007): Capital liberalization, industrial agglomeration and wage inequality.
en
oai:mpra.ub.uni-muenchen.de:11426
2019-09-26T18:13:15Z
7374617475733D756E707562
7375626A656374733D4F:4F32:4F3234
7375626A656374733D46:4631:463132
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/11426/
Industrial Agglomeration and Wage Inequality in China
Li, Yao
O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R12 - Size and Spatial Distributions of Regional Economic Activity
This paper estimates nonlinear structural wage equations derived from NEG model with data on 327 cities in China. The estimation results show that the variation of wage level across cities in China is associated with proximity to large markets. The estimated elasticity of substitution of China is smaller than those of the other countries studied in previous research. It indicates that with the same increase of sub-regional market size, China may suffer more serious regional inequality problems. My estimation shows that although increased agglomeration can increase each city’s wage level, it may also increase the wage gap between large and small cities.
2008-05
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/11426/1/MPRA_paper_11426.pdf
Li, Yao (2008): Industrial Agglomeration and Wage Inequality in China.
en
oai:mpra.ub.uni-muenchen.de:11441
2019-09-27T04:39:43Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D43:4332:433233
7375626A656374733D4F:4F35:4F3532
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/11441/
The Internal Market for Services of the European Union - Evidence from the OECD-Panel Data
Weber, Lars
Asmus, Juergen
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
C23 - Panel Data Models ; Spatio-temporal Models
O52 - Europe
The European Union service sector hampers many regulations by the Member States. For this reason, the European Commission issued a directive to reduce regulations and raise competition. We update the study from Kox, Lejourr and Montizaan (2005) with the latest changes of the directive on services o the internal market. Based on OECD-Panel data, we are able to develop a linear service trade model to investigate the economic benefit of such a directive. Our results show that the volume of service trade would decline with a between 2.6%-5.4%. This surprising outcome is contrary to previous results from Kox, Lejour and Montizaan (2005) or Breuss and Badinger (2005). We show that this is due to the latest modification in the service directive.
2008-09-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/11441/1/MPRA_paper_11441.pdf
Weber, Lars and Asmus, Juergen (2008): The Internal Market for Services of the European Union - Evidence from the OECD-Panel Data.
en
oai:mpra.ub.uni-muenchen.de:12232
2019-09-28T10:15:07Z
7374617475733D756E707562
7375626A656374733D52:5231:523133
7375626A656374733D4C:4C31:4C3133
7375626A656374733D41:4132:413230
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/12232/
Die Neue Ökonomische Geographie
Ehrenfeld, Wilfried
R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
L13 - Oligopoly and Other Imperfect Markets
A20 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The achievement of the New Economic Geography is that a way for formal declaration as a result of agglomeration economies of scale, transportation and mobile workforce is offered. Basic effects are always determined by centrifugal and centripetal forces. A finding of the basic model is that transport costs can be crucial for the emergence of a center-periphery model. Likewise, historical developments influence the distribution of industries between regions significantly and enduring. This paper gives a brief introduction to the topic.
The core-periphery model of Krugman (1991) is formally derived.
2004
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/12232/1/MPRA_paper_12232.pdf
Ehrenfeld, Wilfried (2004): Die Neue Ökonomische Geographie.
de
oai:mpra.ub.uni-muenchen.de:12910
2019-09-29T09:55:43Z
7374617475733D756E707562
7375626A656374733D43:4333:433332
7375626A656374733D46:4631:463132
7375626A656374733D46:4633:463331
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/12910/
Economic convergence and the fundamental equilibrium exchange rate in Poland
Rubaszek, Michał
C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F31 - Foreign Exchange
The paper presents an extended version of the fundamental equilibrium exchange rate model (FFER). By introducing potential output into the specification of the foreign trade equations of the partial equilibrium FEER model we show that, under some plausible assumptions, the calculated level of the equilibrium exchange rate is consistent with the estimates of the behavioral equilibrium exchange (BEER). Moreover, we indicate that including the terms of trade as an explanatory variable in a reduced-form BEER equation for the real exchange rate might lead to the indeterminacy of the parameter estimates. The proposed model is applied to analyze fluctuations of the Polish zloty. We show that the real appreciation of the zloty is to a largely an equilibrium phenomenon.
2008-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/12910/1/MPRA_paper_12910.pdf
Rubaszek, Michał (2008): Economic convergence and the fundamental equilibrium exchange rate in Poland.
en
oai:mpra.ub.uni-muenchen.de:13053
2019-09-26T22:33:38Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D43:4336:433631
7375626A656374733D52:5232:523233
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/13053/
Bifurcations in Regional Migration Dynamics
Berliant, Marcus
Kung, Fan-chin
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis
R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics
The tomahawk bifurcation is used by Fujita et al. (1999) in a model with two regions to explain the formation of a core-periphery urban pattern from an initial uniform distribution. Baldwin et al. (2003) show that the tomahawk bifurcation disappears when the two regions have an uneven population of immobile agricultural workers. Thus, the appearance of this type of bifurcation is the result of assumed exogenous model symmetry. We provide a general analysis in a regional model of the class of bifurcations that have crossing equilibrium loci, including the tomahawk bifurcation, by examining arbitrary smooth parameter paths in a higher dimensional parameter space. We find that, in a parameter space satisfying a mild rank condition, generically in all parameter paths this class of bifurcations does not appear. In other words, conclusions drawn from the use of this bifurcation to generate a core-periphery pattern are not robust. Generically, this class of bifurcations is a myth, an urban legend.
2009-01-28
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/13053/1/MPRA_paper_13053.pdf
Berliant, Marcus and Kung, Fan-chin (2009): Bifurcations in Regional Migration Dynamics.
en
oai:mpra.ub.uni-muenchen.de:13385
2019-09-27T00:43:14Z
7374617475733D756E707562
7375626A656374733D44:4431:443131
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/13385/
Non-Homothetic Preferences and Labor Heterogeneity: The Effects of Income Inequality on Trade Patterns
Marcelo, Fukushima
D11 - Consumer Economics: Theory
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper builds a two-country-two-sector trade model with a monopolistically competitive sector and non-homothetic preferences. It assumes the existence of two types of goods: necessities (which are homogeneous) and luxuries (which are differentiated) and heterogeneous labor. The implications of income inequality on trade patterns are examined. It also considers the effects of redistributive policies on the
production structure and welfare of countries and concludes that: First, in autarky, the more unequal country produces a larger number of varieties; Second, the opening to trade will unambiguously increase the number of varieties consumed by any country, and hence, welfare; Third, the more equal country benefits more from trade liberalization. Fourth, a redistributive policy may harm some consumers not only by diminishing disposable income, but also by diminishing the number of varieties produced.
2008-05
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/13385/1/MPRA_paper_13385.pdf
Marcelo, Fukushima (2008): Non-Homothetic Preferences and Labor Heterogeneity: The Effects of Income Inequality on Trade Patterns.
en
oai:mpra.ub.uni-muenchen.de:13580
2019-09-26T09:57:12Z
7374617475733D756E707562
7375626A656374733D4F:4F31:4F3130
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3135
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/13580/
Regional dimensions of economic development in Iran: A new economic geography approach
Farmanesh, Amir
O10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O15 - Human Resources ; Human Development ; Income Distribution ; Migration
R12 - Size and Spatial Distributions of Regional Economic Activity
This paper presents a spatial analysis on regional dimensions of poverty and economic development across provinces of Iran. It offers the first ever estimation made in developing countries using this strand of "New Economic Geography" (NEG) models and provides a comparison of the results between previously studied developed countries and Iran as a developing country.
The goal of this study is to offer an analysis of the effects of agglomeration and dispersion economies on the patterns of regional economic development in Iran. It analyzes the linkages among adjacent provinces as well as effects of agglomeration and dispersion economies on the patterns of Iran's regional economic development through empirical estimation of two of the NEG models.
First, it presents an estimation of a "Market Potential Function" (MPF), in which wages are associated with proximity to consumer markets. Second, the paper estimates an augmented MPF derived from the Krugman model of economic geography. The parameters in this model estimate the importance of transportation cost and economies of scale.
The estimation results suggest that Iran showed generally good fit to both models and satisfied both MPF and Krugman model specifications. Compared to other similar studies in developed countries, Iran shows smaller returns to scale and consistently higher size of the effect of market potential on wages.
2009-01-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/13580/1/MPRA_paper_13580.pdf
Farmanesh, Amir (2009): Regional dimensions of economic development in Iran: A new economic geography approach.
en
oai:mpra.ub.uni-muenchen.de:13698
2019-09-30T20:54:58Z
7374617475733D756E707562
7375626A656374733D46:4631:463136
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/13698/
Variety Trade and Skill Premium in a Calibrated General Equilibrium Model: The Case of Mexico
Atolia, Manoj
Yoshinori, Kurokawa
F16 - Trade and Labor Market Interactions
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
It can be theoretically shown that variety trade can be a possible source of increased skill premium in wages. No past studies, however, have empirically quantified how much of the increase in skill premium can be accounted for by the increase in variety trade. This paper now formulates a static general equilibrium model and then calibrates it to the Mexican input-output matrix for 1987. In the calibrated model, our numerical experiments show that the increase in U.S.-Mexican variety trade can explain approximately 12 percent of the actual increase in skill premium in Mexico from 1987 to 2000.
2008-10-29
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/13698/1/MPRA_paper_13698.pdf
Atolia, Manoj and Yoshinori, Kurokawa (2008): Variety Trade and Skill Premium in a Calibrated General Equilibrium Model: The Case of Mexico.
en
oai:mpra.ub.uni-muenchen.de:13934
2019-09-27T22:56:47Z
7374617475733D756E707562
7375626A656374733D46:4634:463432
7375626A656374733D46:4633:463332
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
7375626A656374733D43:4333:433333
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/13934/
The effect of a collective exchange rate adjustment on East Asian exports
Rahman, Mizanur
Kalirajan, Kaliappa
F42 - International Policy Coordination and Transmission
F32 - Current Account Adjustment ; Short-Term Capital Movements
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
C33 - Panel Data Models ; Spatio-temporal Models
This paper estimates long-run effects of a collective exchange rate adjustment on multilateral exports from China, Japan, South Korea, and Taiwan. The findings show that a 1 percent generalized appreciation of all East Asian exchange rates would reduce East Asian exports by about 3 percent.
2008-03-27
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/13934/1/MPRA_paper_13934.pdf
Rahman, Mizanur and Kalirajan, Kaliappa (2008): The effect of a collective exchange rate adjustment on East Asian exports.
en
oai:mpra.ub.uni-muenchen.de:14011
2019-09-29T14:20:20Z
7374617475733D756E707562
7375626A656374733D46:4631:463136
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/14011/
Trade and Variety-Skill Complementarity: A Simple Trade-Based Resolution of Wage Inequality Anomaly
Kurokawa, Yoshinori
F16 - Trade and Labor Market Interactions
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The Stolper-Samuelson theorem predicts the relative wage of high-skilled labor will increase in the U.S. but decrease in Mexico after trade, while data shows the skill premium began to rise in both countries during the 1980s. This paper presents a simple trade-based resolution of this “wage inequality anomaly.” The resolution is a straightforward application of well-known variety trade models. Intra-industry trade increases the variety of intermediate goods used by the high-skill intensive final good. If the varieties and high skill are “complements,” the skill premium rises in both countries. Evidence supports this linking of intra-industry trade to wage inequality.
2006-04
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/14011/1/MPRA_paper_14011.pdf
Kurokawa, Yoshinori (2006): Trade and Variety-Skill Complementarity: A Simple Trade-Based Resolution of Wage Inequality Anomaly.
en
oai:mpra.ub.uni-muenchen.de:14678
2019-10-08T14:20:37Z
7374617475733D756E707562
7375626A656374733D46:4631:463130
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/14678/
Estimating Product Quality in International Trade
Borin, Alessandro
Lamieri, Marco
F10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
In recent years empirical studies offer clear evidence on the increasing importance of intra-industry trade in presence of vertically differentiated products. These are goods that, within the same industry, are distinguished by different quality levels.
In the new trade theory and in the neoclassical literature there is not a well-established methodology to estimate good's quality in international trade; this contribution presents different methodologies starting from a review of the literature and proposing alternative solutions.
In the first part of the paper classical indicators of intra-industry trade are presented as well as original measures, in the vein of Aw and Roberts, starting observing the evolution of export to identify the qualitative changes in absolute terms and relative to competitors.
These indicators can be influenced not only by quality shifts but also by other cyclical and structural factors. To overcome these limitations and give a better interpretation of the underlying phenomenon we present a micro-founded model that attempts to evaluate the effect of quality on export demand. This model is based on the underlying relation between vertical product differentiation, goods substitution effect and market power of exporting firms. In the last part an econometric methodology is presented to estimate price elasticity of volume market share as function of the difference in price against competitors in an inter-temporal framework.
The policy implications of this research moves from a better assessment of countries international market positioning and price setting strategy to the identifications of competitive dynamics based on quality rather than on prices.
2007-09-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/14678/1/MPRA_paper_14678.pdf
Borin, Alessandro and Lamieri, Marco (2007): Estimating Product Quality in International Trade.
en
oai:mpra.ub.uni-muenchen.de:15132
2019-09-28T09:48:42Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/15132/
Indirect Network Effects and Trade Liberalization
Iwasa, Kazumichi
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Indirect network effects exist when the utility of consumers is increasing in the variety of complementary products available for use with an electronic hardware device. In this paper, we examine how trade liberalization affects production structure in the presence of indirect network effects. For these purposes we construct a simple two-country model of trade with incompatible country-specific hardware technologies. It is shown that, given that both countries' hardware devices remain in the trading equilibrium, both countries gain from trade liberalization. It is also shown that if only one country's hard-ware remains in the integrated market, the other country may lose
from trade liberalization.
2009
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/15132/1/MPRA_paper_15132.pdf
Iwasa, Kazumichi and Kikuchi, Toru (2009): Indirect Network Effects and Trade Liberalization.
en
oai:mpra.ub.uni-muenchen.de:15193
2019-10-04T09:38:16Z
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7375626A656374733D46:4632:463233
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https://mpra.ub.uni-muenchen.de/15193/
Preferential trading areas: investment and welfare effects when countries differ in their size
Uppal, Yogesh
F15 - Economic Integration
F23 - Multinational Firms ; International Business
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper examines the investment and welfare effects of
a preferential trading area (PTA) on member and non-member countries
when countries differ in their relative size. I numerically solve a
three-country and two-good model to characterize equilibria
pertaining to investment diverting and creating effects of a
preferential trade area. I conclude that welfare benefits of a
preferential trade area are non-negative for the member countries,
and could go either way for the non-member countries depending on
their relative size. There exist equilibria which, given the
parameter values and the relative size, result in welfare
improvement in non-member countries.
2008-06-30
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/15193/3/MPRA_paper_15193.pdf
Uppal, Yogesh (2008): Preferential trading areas: investment and welfare effects when countries differ in their size.
en
oai:mpra.ub.uni-muenchen.de:15239
2019-09-26T15:21:26Z
7374617475733D756E707562
7375626A656374733D52:5231:523132
7375626A656374733D46:4631:463132
7375626A656374733D43:4336
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https://mpra.ub.uni-muenchen.de/15239/
Agglomeration under Forward-Looking Expectations: Potentials and Global Stability
Oyama, Daisuke
R12 - Size and Spatial Distributions of Regional Economic Activity
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling
This paper considers a class of migration dynamics with forward-looking agents in a multi-country solvable variant of the core-periphery model of Krugman (Journal of Political Economy 99 (1991)). We find that, under a symmetric externality assumption, our static model admits a potential function, which allows us to identify a stationary state that is uniquely absorbing and globally accessible under the perfect foresight dynamics whenever the degree of friction in relocation decisions is sufficiently small. In particular, when trade barriers are low enough, full agglomeration in the country with the highest barrier is the unique stable state for small frictions. New aspects in trade and tax policy that arise due to forward-looking behavior are discussed.
2006-03-28
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/15239/1/MPRA_paper_15239.pdf
Oyama, Daisuke (2006): Agglomeration under Forward-Looking Expectations: Potentials and Global Stability.
en
oai:mpra.ub.uni-muenchen.de:15954
2019-09-29T16:09:07Z
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7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/15954/
Is the Armington Elasticity Really Constant across Importers?
Yilmazkuday, Hakan
F13 - Trade Policy ; International Trade Organizations
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
This paper shows that the Armington elasticity, which refers to both the elasticity of substitution across goods and the price elasticity of demand under the assumption of a large number of varieties, systematically changes from one importer country to another in an international trade context. Then a natural question to ask is "What determines the Armington elasticity?" The answer comes from the distinction between the elasticity of demand with respect to the destination price (i.e., the Armington elasticity) and the elasticity of demand with respect to the source price. Under additive trade costs, it is shown that the elasticity of demand with respect to the destination price is equal to the sum of the elasticity of demand with respect to the source price and the elasticity of demand with respect to the trade costs. The empirical results using the United States export data at the state level support this relation; hence, it is more likely to have a constant elasticity of demand with respect to the source price rather than a constant Armington elasticity under additive trade costs. In terms of policy implications, the constant Armington elasticity undervalues the effects of a policy change around 3 or 4 times compared to the importer-specific Armington elasticities.
2009-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/15954/1/MPRA_paper_15954.pdf
Yilmazkuday, Hakan (2009): Is the Armington Elasticity Really Constant across Importers?
en
oai:mpra.ub.uni-muenchen.de:16016
2019-09-27T09:36:27Z
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7375626A656374733D46:4631:463132
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https://mpra.ub.uni-muenchen.de/16016/
Interregional Trade, Industrial Location and Import Infrastructure
Kikuchi, Toru
Iwasa, Kazumichi
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one region’s import infrastructure can affect firms’ location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.
2009
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/16016/1/MPRA_paper_16016.pdf
Kikuchi, Toru and Iwasa, Kazumichi (2009): Interregional Trade, Industrial Location and Import Infrastructure.
en
oai:mpra.ub.uni-muenchen.de:16141
2019-09-26T22:27:06Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/16141/
A Simple Model of Foreign Brand Penetration under Monopolistic Competition
Kikuchi, Toru
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The main purpose of this study is to illustrate, with a simple monopolistic competition trade model, how trade liberalization (i.e., a decline in trade costs) can affect domestic entrepreneurs' decisions between domestic brands and foreign brands, and thus the degree of foreign
brand penetration. It is shown that, as trade costs decrease, more entrepreneurs choose to provide foreign brands. However, the impact of trade liberalization (in terms of changes in profit levels) becomes smaller as more entrepreneurs switch to foreign brands.
2009
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/16141/1/MPRA_paper_16141.pdf
Kikuchi, Toru (2009): A Simple Model of Foreign Brand Penetration under Monopolistic Competition.
en
oai:mpra.ub.uni-muenchen.de:16906
2019-09-27T17:06:16Z
7374617475733D707562
7375626A656374733D44:4432:443231
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
7375626A656374733D44:4432:443234
7375626A656374733D46:4631:463139
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/16906/
South African exporting firms: What do we know and what should we know?
Edwards, Lawrence
Rankin, Neil A.
Schöer, Volker
D21 - Firm Behavior: Theory
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity
F19 - Other
Policies to stimulate export growth and diversify the composition of exports in South Africa are now high on the government’s agenda. In order to understand exporting and its impact on job creation, one needs to understand how firms function, what determines, or constrains, exporting at the firm level and the links between export behaviour and labour demand. An understanding of these relationships, particularly over time, is also essential for the implementation and evaluation of export related policies. This paper reviews the evidence on South African exporting firms, highlighting what we know, and what we do not know. A key conclusion is that our understanding of firm level export behaviour is severely constrained by the lack of adequate firm data, particularly panel data.
2008-10
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/16906/1/MPRA_paper_16906.pdf
Edwards, Lawrence and Rankin, Neil A. and Schöer, Volker (2008): South African exporting firms: What do we know and what should we know? Published in: Journal of Development Perspectives , Vol. 1, No. 4 (October 2008): pp. 67-92.
en
oai:mpra.ub.uni-muenchen.de:16942
2019-09-27T02:24:01Z
7374617475733D756E707562
7375626A656374733D4F:4F31:4F3130
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3135
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/16942/
Regional dimensions of economic development in Iran: A new economic geography approach
Farmanesh, Amir
O10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O15 - Human Resources ; Human Development ; Income Distribution ; Migration
R12 - Size and Spatial Distributions of Regional Economic Activity
This paper presents a spatial analysis of the regional dimensions of poverty and economic development across provinces of Iran. It offers one of the few estimations made in developing countries using this strand of New Economic Geography (NEG) models and provides a comparison of the results for Iran with those in previously studied developed countries.
The goal of this study is to offer an analysis of the effects of agglomeration and dispersion economies on the patterns of regional economic development in Iran based on the empirical estimation of two of the NEG models. First, it presents an estimation of a Market Potential Function (MPF), in which wages are associated with proximity to consumer markets. Second, it estimates an augmented MPF derived from the Krugman model of economic geography that estimates the importance of transportation costs and economies of scale.
The estimation results suggest that Iran shows a generally good fit to both models, satisfying their specifications. Compared to similar studies of developed countries, Iran shows smaller returns to scale. This might be a result of the nature of the technologies used in the non-farm private sector in Iran, which is less industrial and more traditional. Dispersion and decentralization of industries to achieve lower income inequality between provinces would create a level of loss, but less losses than they would be in Western countries.
The paper also found a significantly and consistently greater effect of market potential on wages in comparison to the effect estimated in similar analyses of other countries. This might be a result of the country relying on an underdeveloped transportation system between provinces in Iran. It is also a highly mountainous and geographically diverse country.
The overall result of this study corroborates the notion of centralization in the Iranian economy. The large wage variations explained by economic geography could cause significant internal migration, beyond that seen in western countries. Indeed, significant internal migration has been observed in Iran in past years.
2009-01-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/16942/2/MPRA_paper_16942.pdf
Farmanesh, Amir (2009): Regional dimensions of economic development in Iran: A new economic geography approach.
en
oai:mpra.ub.uni-muenchen.de:17558
2019-09-27T05:45:20Z
7374617475733D756E707562
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17558/
Bilateralism, multilateralism, and the quest for global free trade
Saggi, Kamal
Yildiz, Halis Murat
F13 - Trade Policy ; International Trade Organizations
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
We develop an equilibrium theory of trade agreements in which both the degree and the nature (bilateral or multilateral) of trade liberalization are endogenously determined. To determine whether and how bilateralism matters, we also analyze a scenario where countries pursue trade liberalization on only a multilateral basis. We find that when countries have asymmetric endowments or when governments value producer interests more than tari¤ revenue and consumer surplus, there exist circumstances where global free trade is a stable equilibrium only if countries are free to pursue bilateral trade agreements. By contrast, under symmetry, both bilateralism and multilateralism yield global free trade.
2009-06-30
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17558/1/MPRA_paper_17558.pdf
Saggi, Kamal and Yildiz, Halis Murat (2009): Bilateralism, multilateralism, and the quest for global free trade.
en
oai:mpra.ub.uni-muenchen.de:17561
2019-09-28T18:45:24Z
7374617475733D756E707562
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17561/
Bilateral trade agreements and the feasibility of multilateral free trade
Saggi, Kamal
Yildiz, Halis Murat
F13 - Trade Policy ; International Trade Organizations
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper compares stable Nash equilibria of two games of trade liberalization. In the FTA game, each country can form an FTA with either one of its trade partners, or both of them, or none of them. By contrast, in the No FTA game, each country must choose either no agreement or free trade. Under symmetry, free trade is uniquely stable under the No FTA game whereas the FTA game also admits a bilateral FTA as an equilibrium. However, there exist patterns of cost asymmetry for which the freedom to pursue bilateral FTAs is necessary for achieving global free trade.
2008-02-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17561/1/MPRA_paper_17561.pdf
Saggi, Kamal and Yildiz, Halis Murat (2008): Bilateral trade agreements and the feasibility of multilateral free trade.
en
oai:mpra.ub.uni-muenchen.de:17562
2019-09-26T15:23:26Z
7374617475733D756E707562
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17562/
Welfare effects of preferential trade agreements under optimal tariffs
Saggi, Kamal
Yildiz, Halis Murat
F13 - Trade Policy ; International Trade Organizations
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
In a three country model with endogenous tariffs, this paper evaluates and contrasts the welfare effects of free trade agreements (FTAs) and customs unions (CUs) — the two most commonly occurring preferential trade agreements (PTAs). We show that if the external tariff of a PTA is not too high, it benefits both members and non-members. We also highlight the implications of a key (but commonly ignored)
distinction between the two types of PTAs: while an FTA member can form an another (independent) FTA with an existing non-member, a CU member cannot. Under a pair of independent bilateral FTAs, the common member’s welfare is higher than that under free trade. Furthermore, if the common member is relatively efficient compared to the other two countries, such a ‘hub and spoke’ pattern of FTAs can yield higher global welfare than free trade. By contrast, such an outcome is never possible under a CU.
2005-12-15
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17562/1/MPRA_paper_17562.pdf
Saggi, Kamal and Yildiz, Halis Murat (2005): Welfare effects of preferential trade agreements under optimal tariffs.
en
oai:mpra.ub.uni-muenchen.de:17589
2019-10-03T06:34:33Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17589/
The gains from variety in the European Union
Mohler, Lukas
Seitz, Michael
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
In this paper, we apply the methodology developed by Feenstra (1994) and Broda and Weinstein (2006) to estimate the gains from imported variety for the 27 countries of the European Union using Eurostat data from the period of 1999 to 2008. Our results show that newer and smaller member states exhibit high
gains from newly imported varieties.
2009
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17589/1/MPRA_paper_17589.pdf
Mohler, Lukas and Seitz, Michael (2009): The gains from variety in the European Union.
en
oai:mpra.ub.uni-muenchen.de:17592
2019-09-28T14:48:11Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17592/
Globalization and the gains from variety: size and openness of countries and the extensive margin
Mohler, Lukas
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
With the seminal work of Feenstra (1994) and its application to the United States by Broda and Weinstein (2006) the gains from variety through trade as suggested by Krugman (1979) have become quantifiable. My paper adds to this literature in different respects: On the theoretical side, the Feenstra ratios are reinterpreted to allow for unobserved growth at the extensive margin. Also, the gains from variety are decomposed regarding countries of origin and industries. On the empirical side, the gains from variety are calculated for the United States and Switzerland, a small open economy. Analyzing the empirical results for these countries as well as data from other OECD economies, it is then argued that size and openness of countries as well as the (unobserved) true growth at the extensive margin are important factors in determining the welfare gains from variety.
2009-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17592/1/MPRA_paper_17592.pdf
Mohler, Lukas (2009): Globalization and the gains from variety: size and openness of countries and the extensive margin.
en
oai:mpra.ub.uni-muenchen.de:17658
2019-10-03T04:50:45Z
7374617475733D756E707562
7375626A656374733D4F:4F32:4F3234
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F33:4F3332
7375626A656374733D43:4337:433733
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17658/
Pros and Cons of Backing Winners in Innovation Policy
Jo, Seung-gyu
den Butter, Frank A. G.
O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O32 - Management of Technological Innovation and R&D
C73 - Stochastic and Dynamic Games ; Evolutionary Games ; Repeated Games
In the economics profession there is a fierce debate whether industrial and innovation policy should be targeted to specific sectors or firms. This paper discusses the welfare effects of such targeted policies in a third-market international trade model under imperfect competition. A theoretical case for picking winners through a preferential innovation policy is discussed, which is shown to hold without evoking retaliation from foreign competitors. However, in practice information uncertainties remain a concern. The question whether in this case ‘backing winners’ is a wise policy option depends on the characteristics of the information asymmetries and on the extent the government is able to design selection procedures in a way to minimize the transaction costs that may be caused from the market participants’ opportunistic behavior.
2009-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17658/1/MPRA_paper_17658.pdf
Jo, Seung-gyu and den Butter, Frank A. G. (2009): Pros and Cons of Backing Winners in Innovation Policy.
en
oai:mpra.ub.uni-muenchen.de:17721
2019-10-02T13:00:54Z
7374617475733D707562
7375626A656374733D46:4631:463131
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17721/
Assessing the impact of the EU-sponsored trade liberalization in the MENA countries
Hagemejer, Jan
Cieslik, Andrzej
F11 - Neoclassical Models of Trade
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
The EU-sponsored Barcelona conference in 1995 set the ambitious goal of creating the Euro-Mediterranean Free Trade Area (EUROMED) that would include the European Union and the MENA countries by 2010. The intermediate steps towards building the EUROMED have involved bilateral “vertical” trade liberalization between the EU and the particular MENA countries as well as “horizontal” trade liberalization among themselves. In this paper we evaluate empirically the effects of the new EU Association Agreements with the MENA countries using the augmented gravity equations derived from a variety of neoclassical and new trade theory models and panel data for the period 1980-2004. We find that while these agreements increased significantly imports of the MENA countries from the EU they had no positive impact on their exports to the EU which can be attributed to the asymmetry in trade liberalization between the EU and the MENA countries.
2009-06
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17721/2/MPRA_paper_17721.pdf
Hagemejer, Jan and Cieslik, Andrzej (2009): Assessing the impact of the EU-sponsored trade liberalization in the MENA countries. Published in: Journal of Economic Integration , Vol. 24, No. 2 (June 2009): pp. 344-369.
en
oai:mpra.ub.uni-muenchen.de:17913
2019-09-28T15:23:52Z
7374617475733D756E707562
7375626A656374733D46:4631:463130
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/17913/
Robustness of the Extensive Margin in the Helpman, Melitz and Rubinstein (HMR) Model
Maxim, Belenkiy
F10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
The HMR model extends the classical gravity model of trade to correct for the large number of zeros in the world trade matrix (export selection) and for the unobservable fraction of exporting fi�rms (extensive margin). They �find that, while omission of both of these corrections result in the biased estimates of the gravity model, the extensive margin correction is the most signi�ficant of the two when estimating the trade flows. I test the robustness of this conclusion by splitting the world trade data into OECD and non-OECD countries. The extensive margin should be both economically and statistically more signi�ficant for the OECD exporters, while export selection should play a larger in the trade flows for the non-OECD exporters. I �find that
the extensive margin is not signi�ficant for the OECD trade flows, but the export selection is important regardless of the exporter location. These �ndings call into question the conclusions of the HMR model. I posit and test possible hypothesis to explain them.
2008-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/17913/1/MPRA_paper_17913.pdf
Maxim, Belenkiy (2008): Robustness of the Extensive Margin in the Helpman, Melitz and Rubinstein (HMR) Model.
en
oai:mpra.ub.uni-muenchen.de:18029
2019-09-30T18:05:32Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D46:4631:463132
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/18029/
Trade openness and city interaction
Ramírez Grajeda, Mauricio
Sheldon, Ian
F15 - Economic Integration
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R12 - Size and Spatial Distributions of Regional Economic Activity
The New Economic Geography framework supports the idea that economic integration plays an important role in explaining urban concentration. By using Fujita et al. (1999) as a theoretical motivation, and information on the 5 most important cities of 84 countries, we find that the size of main cities declines and the size of secondary cities increases as a result of external trade. Similar results are obtained for cities with a population over a million. However, cities with a large fraction of the urban population grow independently of their position in the urban ranking. The implications for urban planners and development economists is that investment in infrastructure must take place in secondary cities when a country is involved in a process of trade liberalization, especially, those located near ports.
2009-05-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/18029/1/MPRA_paper_18029.pdf
Ramírez Grajeda, Mauricio and Sheldon, Ian (2009): Trade openness and city interaction.
en
oai:mpra.ub.uni-muenchen.de:18076
2019-09-27T14:58:57Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D46:4631:463132
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/18076/
Spatial implications of international trade under the new economic geography approach
Ramírez Grajeda, Mauricio
de León Arias, Adrián
F15 - Economic Integration
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R12 - Size and Spatial Distributions of Regional Economic Activity
In 2008, Paul Krugman from Princeton University was awarded the Nobel Prize in Economic Sciences by the Central Bank of Sweden, for his “analysis of trade patterns and location of economic activity”. In this paper we survey the literature, known as the New Economic Geography (NEG), launched by Krugman (1991). In particular, we focus on four topics: (i) NEG roots, (ii) NEG rationale; (ii) the spatial impact of international trade on global economic imbalances; and (iv) the impact of international trade on urban structure.
2009-10-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/18076/1/MPRA_paper_18076.pdf
Ramírez Grajeda, Mauricio and de León Arias, Adrián (2009): Spatial implications of international trade under the new economic geography approach.
en
oai:mpra.ub.uni-muenchen.de:18380
2019-09-26T08:45:58Z
7374617475733D756E707562
7375626A656374733D45:4533:453331
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F33:4F3331
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https://mpra.ub.uni-muenchen.de/18380/
Macroeconomic Analysis on the Basis of Trade Theory: A Review Essay
Gao, Xiang
E31 - Price Level ; Inflation ; Deflation
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O31 - Innovation and Invention: Processes and Incentives
This paper reviews the branch of literature that applies models developed in international trade theory (Microeconomics) to explain phenomena found in international finance (Macroeconomics). Among all international trade models, the New New Trade Theory with productivity heterogeneity across firms in the same industry has proved to be a powerful tool to bridge the gap between international trade and finance. As a result, this review focuses on several papers in this nascent field, where the behavior of macroeconomic indicators are generated from sound microeconomic foundation.
2009-08
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/18380/1/MPRA_paper_18380.pdf
Gao, Xiang (2009): Macroeconomic Analysis on the Basis of Trade Theory: A Review Essay.
en
oai:mpra.ub.uni-muenchen.de:19990
2019-09-30T10:09:54Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D44:4434:443433
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/19990/
Consumer Preferences in Monopolistic Competition Models
Tarasov, Alexander
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
D43 - Oligopoly and Other Forms of Market Imperfection
This paper develops a novel approach to modeling preferences in monopolistic competition models with a continuum of goods. In contrast to the commonly used CES preferences, which do not capture the effects of consumer income and the intensity of competition on equilibrium prices, the present preferences can capture both effects. I show that under an unrestrictive regularity assumption, the equilibrium prices decrease with the total mass of available goods (which represents the intensity of competition in the model) and increase with consumer income. The former implies that the entry of firms in the market or opening a country to international trade has a pro-competitive effect that decreases equilibrium prices.
2009-11
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/19990/1/MPRA_paper_19990.pdf
Tarasov, Alexander (2009): Consumer Preferences in Monopolistic Competition Models.
en
oai:mpra.ub.uni-muenchen.de:20199
2019-10-02T16:42:48Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/20199/
Trade Liberalization and Welfare Inequality: a Demand-Based Approach
Tarasov, Alexander
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
There is strong evidence that different income groups consume different bundles of goods. This evidence suggests that trade liberalization can affect welfare inequality within a country via changes in the relative prices of goods consumed by different income groups (the price effect). In this paper, I develop a framework that enables us to explore the role of the price effect in determining welfare inequality. There are two core elements in the model. First, I assume that heterogenous in income consumers share identical but nonhomothetic preferences. Secondly, I consider a monopolistic competition environment that leads to variable markups affected by trade and trade costs. I find that trade liberalization does affect the prices of different goods differently and, as a result, can benefit some income classes more than others. In particular, I show that the relative welfare of the rich with respect to that of the poor has a hump shape as a function of trade costs.
2008-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/20199/1/MPRA_paper_20199.pdf
Tarasov, Alexander (2008): Trade Liberalization and Welfare Inequality: a Demand-Based Approach.
en
oai:mpra.ub.uni-muenchen.de:20342
2019-09-28T17:30:45Z
7374617475733D756E707562
7375626A656374733D44:4438:443831
7375626A656374733D42:4230
7375626A656374733D5A:5A31
7375626A656374733D41:4131
7375626A656374733D46:4631:463132
7375626A656374733D42:4234
7375626A656374733D46:4631
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/20342/
Tipos de argumentación en economía política
Estrada, Fernando
D81 - Criteria for Decision-Making under Risk and Uncertainty
B0 - General
Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology
A1 - General Economics
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
B4 - Economic Methodology
F1 - Trade
This search covers the following moments: (1) a constellation of argument models is presented, with the purpose of highlighting which characteristic of the debate they should be kept in mind when analyzing written texts or oral speeches in different activities of the daily life (2) the importance is described that have the controversies for the conceptual change and the epistemology (3) the above-mentioned is illustrated with a typical case of controversy in political economy, the debate on the challenges of the free trade (4) We elaborate an interpretation of the dualism explanation/understanding (Erklâren/Verstehen) in the social sciences, starting from the value given to the argumentation models and the controversies.
2010
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/20342/1/MPRA_paper_20342.pdf
Estrada, Fernando (2010): Tipos de argumentación en economía política.
es
oai:mpra.ub.uni-muenchen.de:20410
2019-09-27T22:01:05Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D4A:4A33:4A3331
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/20410/
Globalization and wage premia: reconciling facts and theory
Strauss-Kahn, Vanessa
F15 - Economic Integration
J31 - Wage Level and Structure ; Wage Differentials
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper analyzes the e¤ect of globalization on wage premia by studying the interaction between trade costs, firms’ location decision, and relative demand for labor. It suggests that globalization, through vertical specialization and/or agglomeration, increases inequality in countries with a relative abundance of skilled workers in a way that is observationally equivalent to skilled-biased technological progress (i.e., joint increases in the wage premium and the within-industry skilled–unskilled employment ratio). This confirms the potential role of international trade in explaining the observed increase in wage inequality between skilled and unskilled workers that has occurred in most industrialized countries since the mid- 1970s. Calibration of the model supports this result. It shows that NAFTA has contributed significantly to the observed increase in the U.S. wage premium.
2003-08
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/20410/1/MPRA_paper_20410.pdf
Strauss-Kahn, Vanessa (2003): Globalization and wage premia: reconciling facts and theory.
en
oai:mpra.ub.uni-muenchen.de:21484
2019-09-28T19:14:52Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D46:4634:463431
7375626A656374733D4F:4F33:4F3331
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/21484/
Innovation and the Elasticity of Trade Volumes to Tariff Reductions
Rubini, Loris
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F41 - Open Economy Macroeconomics
O31 - Innovation and Invention: Processes and Incentives
I study the implications of endogenous productivity choices ("innovation") on the effects of trade liberalization. I find that a model with innovation generates an elasticity of trade volumes to tariff reductions that is fifty percent larger than models without innovation, and consistent in magnitude to empirical estimates. To show this, I develop a new model of international trade with innovation, and calibrate it to data on Canada and the United States before the Free Trade Agreement. Feeding into the calibrated model the tariff drop that resulted from the agreement, the increase in the trade volumes is similar to that observed in the data. Without innovation, the change in trade volumes is considerably lower, and similar in magnitude to what existing models without innovation have found.
2009-12-17
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/21484/1/MPRA_paper_21484.pdf
Rubini, Loris (2009): Innovation and the Elasticity of Trade Volumes to Tariff Reductions.
en
oai:mpra.ub.uni-muenchen.de:21738
2019-09-29T10:14:06Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D46:4632:463232
7375626A656374733D52:5231:523133
7375626A656374733D43:4336:433635
7375626A656374733D46:4631:463132
7375626A656374733D52:5231:523132
7375626A656374733D43:4336:433632
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/21738/
Spatial Discounting, Fourier, and Racetrack Economy: A Recipe for the Analysis of Spatial Agglomeration Models
Akamatsu, Takashi
Takayama, Yuki
Ikeda, Kiyohiro
F15 - Economic Integration
F22 - International Migration
R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
C65 - Miscellaneous Mathematical Tools
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R12 - Size and Spatial Distributions of Regional Economic Activity
C62 - Existence and Stability Conditions of Equilibrium
We provide an analytical approach that facilitates understanding the bifurcation mechanism of a wide class of economic models involving spatial agglomeration of economic activities. The proposed method overcomes the limitations of the Turing (1952) approach that has been used to analyze the emergence of agglomeration in the multi-regional core-periphery (CP) model of Krugman (1993, 1996). In other words, the proposed method allows us to examine whether agglomeration of mobile factors emerges from a uniform distribution and to analytically trace the evolution of spatial agglomeration patterns (i.e., bifurcations from various polycentric patterns as well as a uniform pattern) that these models exhibit when the values of some structural parameters change steadily. Applying the proposed method to the multi-regional CP
model, we uncover a number of previously unknown properties of the CP model, and
notably, the occurrence of “spatial period doubling bifurcation” in the CP model is
proved.
2009-08-18
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/21738/1/MPRA_paper_21738.pdf
Akamatsu, Takashi and Takayama, Yuki and Ikeda, Kiyohiro (2009): Spatial Discounting, Fourier, and Racetrack Economy: A Recipe for the Analysis of Spatial Agglomeration Models.
en
oai:mpra.ub.uni-muenchen.de:21746
2019-09-28T04:46:12Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D46:4631:463132
7375626A656374733D46:4630:463032
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/21746/
The Possible Trade Effects of the Third Enlargement: The Case of Turkish Exports to EU
Deger, Cagacan
F15 - Economic Integration
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F02 - International Economic Order and Integration
F14 - Empirical Studies of Trade
This paper aims to comment on the trade impact of the new wave of European enlargement with the membership of Central and Eastern European Countries (CEEC) by focusing on the case of Turkish exports to EU members, new member countries and candidate countries. It is calculated that once the membership process of new members are completed by 2006, growth rate of Turkish exports to EU between 2001 and 2006 may slow down whereas the growth rate of Turkish exports to new member countries between 2001 and 2006 may increase.
2003-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/21746/1/MPRA_paper_21746.pdf
Deger, Cagacan (2003): The Possible Trade Effects of the Third Enlargement: The Case of Turkish Exports to EU.
en
oai:mpra.ub.uni-muenchen.de:22346
2019-10-01T18:09:35Z
7374617475733D756E707562
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/22346/
Foreign Direct Investment and Customs Union: Incentives for Multilateral Tariff Cooperation over Free Trade
Yildiz, Halis Murat
F13 - Trade Policy ; International Trade Organizations
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
We examine the implications of a customs union (CU) on the pattern of tariffs, welfare and the prospects for free trade when the nonmember firm has an incentive to engage in foreign direct investment (FDI). First we show that upon the formation of a bilateral CU, the non-member firm has greater incentives to engage in FDI. However, when FDI becomes a feasible entry option for the nonmember firm under a CU, member countries have incentives to strategically induce export over FDI by lowering their joint external tariff. When fixed set-up cost of FDI is sufficiently low, this tariff falls below Kemp-Wan tariff and CU leads to a Pareto improvement relative to no agreement. Moreover, using an infinite repetition of the one-shot tariff game under a CU, we show that FDI incentive of the nonmember firm makes the member countries (nonmember country) more (less) willing to cooperate multilaterally over free trade.
2010-04-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/22346/1/MPRA_paper_22346.pdf
Yildiz, Halis Murat (2010): Foreign Direct Investment and Customs Union: Incentives for Multilateral Tariff Cooperation over Free Trade.
en
oai:mpra.ub.uni-muenchen.de:22652
2019-09-27T16:32:55Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D4C:4C36:4C3630
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/22652/
The effect of international trade on mark-ups distribution
Moreno, L
Rodríguez, D
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
L60 - General
This paper presents empirical evidence about the relationship between market openness and markup distribution of manufacturing firms. The empirical analysis uses a panel data set of Spanish firms in the period 1990-2005, with a structural approach that lets us to identify individual mark-ups. The results point out that tougher competition associated to openness reduces the average of marginal costs and prices, while it increases the average firm size. However, the evidence about the effect on average markups and the dispersion of performance variables is weaker. These results partially support the theoretical predictions by the recent literature on efficiency heterogeneity and international trade and, in particular, Melitz and Ottaviano (2008).
2009
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/22652/5/MPRA_paper_22652.pdf
Moreno, L and Rodríguez, D (2009): The effect of international trade on mark-ups distribution.
en
oai:mpra.ub.uni-muenchen.de:22738
2019-09-28T16:50:38Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D4C:4C35:4C3530
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/22738/
Entry, Competitiveness and Exports: Evidence from Firm Level Data of Indian Manufacturing
Barua, Alokesh
Chakraborty, Debashis
Hariprasad, C. G.
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
L50 - General
The industry and trade policy regimes in India have witnessed drastic changes since 1991. The dismantling of the industrial licensing system and thereby allowing free entry to and exit from the industry of firms in 1991 followed by the WTO induced trade liberalization leading to substantial reduction in tariffs and gradual softening of foreign investment regulations, particularly in the context of foreign direct investment since 1995, may have had significant impact on the state of competitiveness in India industries. In this paper an attempt has been made to evaluate the effects of trade and industrial policy changes on domestic competitiveness for select Indian industries during post-liberalization period. Though there exists a pool of empirical literature focusing on the state of competitiveness in India, the link between theoretical models underlying the empirical analysis is not often strong. Moreover, a section of the literature focuses on a combination of firm and industry data for drawing conclusions on firm behavior, which may not reflect the actual scenario. Given this background, the present paper attempts to provide a unified approach to examine the inter-relationships between entry and competitiveness within a consistent oligopolistic market framework. The empirical analysis of the present study, carried out on the basis of firm data for 14 sectors over 1990-2008, indicates that Indian industry have shown considerable changes over the last decade in terms of entry and competitiveness. An overall decline in concentration is witnessed between the two end points, which signify the importance of newer entry in the markets. The Price-Cost Margin however behaves differently for different sectors, which could be explained by the differing level of spillover of technical changes as a result of increased pressure of competition due to liberalization. Demand curve is generally found to be inelastic and declines over the period. The relationship between the size of the firms and their export volume turns out to be significantly positive.
2010-05-15
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/22738/1/MPRA_paper_22738.pdf
Barua, Alokesh and Chakraborty, Debashis and Hariprasad, C. G. (2010): Entry, Competitiveness and Exports: Evidence from Firm Level Data of Indian Manufacturing.
en
oai:mpra.ub.uni-muenchen.de:23602
2019-09-29T05:33:40Z
7374617475733D756E707562
7375626A656374733D44:4432:443233
7375626A656374733D4C:4C32:4C3233
7375626A656374733D46:4631:463132
7375626A656374733D4F:4F31:4F3134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/23602/
Transaction Cost, Technology Transfer and Mode of Organization
Mandal, Biswajit
Marjit, Sugata
D23 - Organizational Behavior ; Transaction Costs ; Property Rights
L23 - Organization of Production
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology
We develop a monopolistically competitive model for a closed economy without contract incompleteness. We show that if superior technology is not allowed to be transferred, integration would be the best mode of organization given that the transaction cost of intermediate input is sufficiently small. However, transferability of technology calls for adding the dimension of factor intensity of input. We then prove that integration could be the better option only when input production technology is capital-intensive. Thus we validate the empirical claim of Antras (2003) from a perspective other than incomplete contract.
2010-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/23602/1/MPRA_paper_23602.pdf
Mandal, Biswajit and Marjit, Sugata (2010): Transaction Cost, Technology Transfer and Mode of Organization.
en
oai:mpra.ub.uni-muenchen.de:24146
2019-09-27T00:57:53Z
7374617475733D756E707562
7375626A656374733D46:4631:463130
7375626A656374733D46:4631:463132
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/24146/
Productivity, quality and exporting behavior under minimum quality constraints
Hallak, Juan Carlos
Sivadasan, Jagadeesh
F10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F14 - Empirical Studies of Trade
We develop a model of international trade with two sources of firm heterogeneity: "productivity" and "caliber". Productivity is modeled as is standard in the literature. Caliber is the ability to produce quality using few fixed inputs. While there is no quality restriction to sell domestically, exporting requires the attainment of minimum quality levels. Compared to single-attribute models of firm heterogeneity emphasizing either productivity or the ability to produce quality, our model provides a more nuanced characterization of firms' export behavior. In particular, it explains the empirical fact that firm size is not monotonically related with export status; there are small firms that export while there are large firms that only operate in the domestic market. The model also delivers novel testable predictions. Conditional on size, exporters sell products of higher quality and at higher prices, they pay higher wages and use capital more intensively. We test these predictions using data on manufacturing establishments in India, the U.S., Chile, and Colombia. The empirical findings confirm the theoretical predictions.
2008-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/24146/1/MPRA_paper_24146.pdf
Hallak, Juan Carlos and Sivadasan, Jagadeesh (2008): Productivity, quality and exporting behavior under minimum quality constraints.
en
oai:mpra.ub.uni-muenchen.de:24390
2019-09-29T04:24:50Z
7374617475733D756E707562
7375626A656374733D46:4632:463233
7375626A656374733D46:4631:463132
7375626A656374733D4C:4C31
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/24390/
Exports and productivity selection effects for Dutch firms
Kox, Henk L.M.
Rojas Romasgosa, Hugo
F23 - Multinational Firms ; International Business
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
L1 - Market Structure, Firm Strategy, and Market Performance
The paper investigates whether the self-selection hypothesis and other predictions from the heterogeneous-firms trade models can explain the export participation patterns for Dutch firms in manufacturing and services.
The results provide strong support for the self-selection hypothesis, according to which firms need higher productivity performance to compensate for sunk entry costs in export markets. After controlling for many firm and market characteristics we robustly find higher productivity levels for exporters. The paper also tests for the reverse causality (learning-by-exporting), but finds no empirical
support for it, not even after controlling for the
firm's distance to a constructed international productivity frontier. This latter result may be important for the motivation of future export promotion policies.
The empirical estimates are achieved by probit regressions at the plant level and at the firm level. As a robustness test we also applied the more standard OLS panel regression estimates, which provided similar results.
The paper also tested whether the productivity-export link is conditional on the sectoral market structure and multinational affiliation. Services sectors with high competition and a lower degree of product differentiation have significantly higher export productivity premia than services firms in less competitive sectors. Such differences are not found in the
manufacturing sector.
2010-07-01
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/24390/1/MPRA_paper_24390.pdf
Kox, Henk L.M. and Rojas Romasgosa, Hugo (2010): Exports and productivity selection effects for Dutch firms.
en
oai:mpra.ub.uni-muenchen.de:24394
2019-10-05T16:29:21Z
7374617475733D707562
7375626A656374733D46:4631:463135
7375626A656374733D43:4331:433134
7375626A656374733D4F:4F34:4F3439
7375626A656374733D46:4631:463132
7375626A656374733D43:4337:433732
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/24394/
Dimensión Territorial como Factor del Desarrollo Económico: Algunos Aportes Metodológicos para su Medición.
Arroyo, Santiago
Bustamante, Christian
F15 - Economic Integration
C14 - Semiparametric and Nonparametric Methods: General
O49 - Other
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
C72 - Noncooperative Games
The present document tries to explain the territorial dimension as factor of the economic development, considering the theoretical support of the new economic geography and incorporating a methodology of analysis from models of optimization.
Complementing such a methodology, there get in the document the contributions of the school of thought that he studies the models of convergence, doing an offer of reformulation to such models with the aim to deliver the planner Territorial tools of analyses that allow to identify winning and losing regions.
Additional, the document connects the approach of cooperation and association Place (partnership) with a methodological offer depending on the games of theory.
2009-07-02
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/24394/1/MPRA_paper_24394.pdf
Arroyo, Santiago and Bustamante, Christian (2009): Dimensión Territorial como Factor del Desarrollo Económico: Algunos Aportes Metodológicos para su Medición. Published in: Revista Estudios Demográficos y Urbanos , Vol. 72, No. 0186-7210 (12 December 2009): pp. 675-696.
es
oai:mpra.ub.uni-muenchen.de:24473
2019-10-02T16:43:09Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/24473/
Time Zones and Periodic Intra-Industry Trade
Kikuchi, Toru
Marjit, Sugata
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
An important source of trade with time zone differences is related to the “coincidence in time” aspect of service transactions. Trade across different time zones is gainful when fulfilling nighttime demand in one time zone by utilizing daytime supply in another time zone. This note emphasizes that, due to communications revolutions, new versions of periodic intra-industry trade based on the differences in time zones emerge.
2010-07
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/24473/1/MPRA_paper_24473.pdf
Kikuchi, Toru and Marjit, Sugata (2010): Time Zones and Periodic Intra-Industry Trade.
en
oai:mpra.ub.uni-muenchen.de:24474
2019-09-28T02:20:40Z
7374617475733D756E707562
7375626A656374733D4C:4C31:4C3133
7375626A656374733D46:4631:463132
7375626A656374733D44:4434:443433
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/24474/
Cross-border Merger, Vertical Structure, and Spatial Competition
Beladi, Hamid
Chakrabarti, Avik
Marjit, Sugata
L13 - Oligopoly and Other Imperfect Markets
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
D43 - Oligopoly and Other Forms of Market Imperfection
This analysis is a natural follow up of continued efforts to assess the consequences of cross-border mergers in industries with a vertical structure. Absent free trade, in a vertically related industry, the downstream firms will not choose the social optimum under spatial price discrimination when none of the downstream firms produce all the varieties that consumers demand. We show that free trade will induce the downstream firms to gravitate toward the social optimum but an upstream merger across borders, under free trade, will pull the downstream firms away from the social optimum back to their autarkic positions.
2010
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/24474/1/MPRA_paper_24474.pdf
Beladi, Hamid and Chakrabarti, Avik and Marjit, Sugata (2010): Cross-border Merger, Vertical Structure, and Spatial Competition.
en
oai:mpra.ub.uni-muenchen.de:25636
2019-09-26T08:46:16Z
7374617475733D756E707562
7375626A656374733D4F:4F31:4F3138
7375626A656374733D46:4631:463132
7375626A656374733D52:5231:523132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/25636/
Spatial Period-Doubling Agglomeration of a Core-Periphery Model with a System of Cities
Ikeda, Kiyohiro
Akamatsu, Takashi
Kono, Tatsuhito
O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
R12 - Size and Spatial Distributions of Regional Economic Activity
The orientation and progress of spatial agglomeration for Krugman's core--periphery model are investigated in this paper. Possible agglomeration patterns for a system of cities spread uniformly on a circle are set forth theoretically. For example, a possible and most likely course predicted for eight cities is a gradual and successive one---concentration into four cities and then into two cities en route to a single city. The existence of this course is ensured by numerical simulation for the model. Such gradual and successive agglomeration, which is called spatial-period doubling, presents a sharp contrast with the agglomeration of two cities, for which spontaneous concentration to a single city is observed in models of various kinds. It exercises caution about the adequacy of the two cities as a platform of the spatial agglomerations and demonstrates the need of the study on a system of cities.
2009-02-18
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/25636/1/MPRA_paper_25636.pdf
Ikeda, Kiyohiro and Akamatsu, Takashi and Kono, Tatsuhito (2009): Spatial Period-Doubling Agglomeration of a Core-Periphery Model with a System of Cities.
en
oai:mpra.ub.uni-muenchen.de:25862
2019-09-28T06:34:30Z
7374617475733D756E707562
7375626A656374733D46:4631:463133
7375626A656374733D46:4631:463130
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/25862/
A Trade Policy Perspective On Import Quotas And The Substitution Effect
Cadogan, Godfrey
F13 - Trade Policy ; International Trade Organizations
F10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
This paper focuses on the necessary conditions required
in order to exploit the substitution effect which arises
when there is a shift in demand induced by import quotas
under imperfect competition. The protective policy
succeeds if the substitution effect shifts in favor of
goods produced by the domestic industry and this shift
offsets foreign firms quota rents and the decrease in
consumer welfare. While extant literature tends to focus
on welfare loss associated with import quotas, in this
paper social welfare analytics are produced and a trade
policy decision rule for net welfare gain is obtained.
2010-09
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/25862/1/MPRA_paper_25862.pdf
Cadogan, Godfrey (2010): A Trade Policy Perspective On Import Quotas And The Substitution Effect.
en
oai:mpra.ub.uni-muenchen.de:26206
2019-09-28T07:33:19Z
7374617475733D756E707562
7375626A656374733D46:4631:463135
7375626A656374733D43:4336:433638
7375626A656374733D46:4631:463137
7375626A656374733D46:4631:463132
7375626A656374733D46:4632:463231
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/26206/
India-Korea CEPA: Potentials and Realities
Ahmed, Shahid
F15 - Economic Integration
C68 - Computable General Equilibrium Models
F17 - Trade Forecasting and Simulation
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
F21 - International Investment ; Long-Term Capital Movements
The present study investigates the potential economic impacts of India- Korea CEPA using trade indices, partial equilibrium and computable general equilibrium. One hypothetical scenario is examined in SMART model and two hypothetical tariff liberalization scenarios are examined in GTAP model focusing on short run and long run. Using the partial equilibrium WITS-SMART model, we tried to assess the impact of liberalization under the CEPA, assuming full liberalization of imports from the India into Korea and vice versa. We more specifically looked at consumer surplus, trade creation and diversion results as well as the impact on tariff revenues. Using GTAP model, it is a good instrument for identifying the winning and losing countries and sectors under policy changes. GTAP can be used to capture effects on output mix, factor usage, trade effects and resultant welfare distribution between countries as a result of changing trade policies at the country, bilateral, regional and multilateral levels. Finally, bilateral investment flows has also been discussed.
The GTAP results reveal that Korea gains while India loses in terms of welfare. Sectoral output and employment effects are mixed. Both countries are gaining significantly in their bilateral trade flows. The SSA results reveal that the CGE results are robust. Using partial equilibrium analysis, SMART model indicates positive effect on consumer surplus and on other trade flows. However, tariff revenues will be reduced by this agreement. India is expected to loose US$-768.37 million while Korea will loose by US$ -1232.6 million. The study recommends the following in light of our findings. First, in order to tamper the losses in budget revenues, countries should seek to diversify their tax base and develop alternative less distortionary revenue generating strategy. Secondly, if the consumers are to truly benefit of CEPA, the national capacity to limit rent capture by importers and exporters should be strengthened.
2010
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/26206/1/MPRA_paper_26206.pdf
Ahmed, Shahid (2010): India-Korea CEPA: Potentials and Realities.
en
oai:mpra.ub.uni-muenchen.de:26381
2019-09-27T05:49:42Z
7374617475733D756E707562
7375626A656374733D46:4631:463132
7375626A656374733D44:4432:443230
7375626A656374733D46:4631:463134
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/26381/
The Impact of Domestic Resource Cost on the Comparative Advantages of Iran Crude Steel Sector
Ismail, Abdul Ghafar
Gharleghi, Behrooz
Jafari, Yaghoob
Hosseinidoust, Ehsan
Shafighi, Najla
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
D20 - General
F14 - Empirical Studies of Trade
Steel is fundamental material for many industries that could produced by blast furnace (BF) and direct reduced Iron technology (DRI) .these two technologies differ from each other in term of difference of production cost, energy consumption, investment and environment issues. The purpose of this paper is to investigate comparative advantages of these two technologies by using domestic resource cost (DRC) method. It provides a comparison between the domestic costs to produce a specific good with its value added at international prices, which was done by Mckay (1999), DHEHIBI (2009), Ruiz (2003) and Bonjec (2002). The result suggests that that although both two technologies have its own comparative advantages, the blast furnace method (BF) would be more preferable than direct reduced Iron technology (DRI).
2009-12-28
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/26381/1/MPRA_paper_26381.pdf
Ismail, Abdul Ghafar and Gharleghi, Behrooz and Jafari, Yaghoob and Hosseinidoust, Ehsan and Shafighi, Najla (2009): The Impact of Domestic Resource Cost on the Comparative Advantages of Iran Crude Steel Sector.
en
oai:mpra.ub.uni-muenchen.de:26442
2019-09-27T16:28:15Z
7374617475733D756E707562
7375626A656374733D41:4132:413232
7375626A656374733D46:4631:463131
7375626A656374733D44:4434:443431
7375626A656374733D46:4631:463132
7375626A656374733D44:4434:443432
7375626A656374733D43:4339:433931
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/26442/
A Classroom Experiment on Import Tariffs and Quotas Under Perfect and Imperfect Competition
Mulholland, Sean
A22 - Undergraduate
F11 - Neoclassical Models of Trade
D41 - Perfect Competition
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
D42 - Monopoly
C91 - Laboratory, Individual Behavior
This manuscript develops a classroom experiment on international trade that is suitable for undergraduate intermediate macroeconomics, international trade, and international finance courses. Students representing buyers, in a small home country and foreign country, and sellers, both home and foreign, participate in a double-oral-auction to determine the price and level of international trade. By imposing tariffs and quotas and altering the structure of the home market from one of perfect competition to one of imperfect competition, the students experience the importance of market structure when seeking to determine efficiency effects of import tariffs and quotas.
2010-11-04
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/26442/1/MPRA_paper_26442.pdf
Mulholland, Sean (2010): A Classroom Experiment on Import Tariffs and Quotas Under Perfect and Imperfect Competition.
en
oai:mpra.ub.uni-muenchen.de:27315
2019-09-27T00:51:57Z
7374617475733D756E707562
7375626A656374733D46:4631:463130
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/27315/
Does importing more inputs raise exports? Firm level evidence from France
Bas, Maria
Strauss-Kahn, Vanessa
F10 - General
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Following Melitz (2003)'s seminal paper, several theoretical and empirical studies have shown that only the subset of most productive firms export. While other studies provide evidence on a positive effect of an increase in imported inputs on firms' productivity, the link between imported intermediate inputs and export scope has not been made. This paper bridges the gap by studying the impact of imported inputs on the margins of exports. We use a unique firms' level database of imports at the product (HS6) level provided by French Customs for the 1995-2005 period. Access to new varieties of inputs may increase productivity, and thereby exports, through better complementarity of inputs, transfer of technology and/or decreased inputs price index. We test for these different mechanisms by distinguishing the origin of imports (developing vs. developed countries) and constructing an exact price index a la Broda and Weinstein (2006). We find a significant impact of higher diversification and increased number of imported inputs varieties on firm's TFP and export scope. Whereas the complementarity and transfer of technology mechanisms are supported by our results, the price effect seems very limited.
2010-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/27315/1/MPRA_paper_27315.pdf
Bas, Maria and Strauss-Kahn, Vanessa (2010): Does importing more inputs raise exports? Firm level evidence from France.
en
oai:mpra.ub.uni-muenchen.de:27502
2019-09-29T04:40:14Z
7374617475733D756E707562
7375626A656374733D44:4432:443233
7375626A656374733D46:4631:463132
74797065733D7061706572
https://mpra.ub.uni-muenchen.de/27502/
Coordination cost and the distance puzzle
Noblet, Sandrine
Belgodere, Antoine
D23 - Organizational Behavior ; Transaction Costs ; Property Rights
F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation
Since 1960, transport costs have been falling, but international exchange did not become less sensitive to distance. We propose the following explanation for this puzzle: in a Dixit-Stiglitz framework, a decrease in transport cost favors trade, which may increase the international specialization (i.e. the number of varieties of intermediate goods used in production). An increased international specialization increases the need for coordination, and makes relatively more important for downstream firms to be close to their suppliers. As a result, trade increases with all partners, but more quickly for neighbors than for distant countries.
2010-12
MPRA Paper
NonPeerReviewed
application/pdf
en
https://mpra.ub.uni-muenchen.de/27502/1/MPRA_paper_27502.pdf
Noblet, Sandrine and Belgodere, Antoine (2010): Coordination cost and the distance puzzle.
en
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