This paper examines the validity of the ̄ve fundamental theorems of international trade and some other issues in a general model of externality. The model allows the possibility of own-sector externality and cross-sector externality. This paper derives conditions under which some of these theorems are valid, and explains what the government may choose to correct the distortionary e®ects of exte...

This paper examines the validity of the ̄ve fundamental theorems in the positive theory of international trade in a basic model of external economies of scale. It shows that some of these theorems are valid in more cases than the literature suggests. In particular, if global changes under the speci ̄ed adjustment mechanism are allowed, the Rybczynski and Stolper-Samuelson Theorems are always val...

According to the recent literature on finance, financial development generates a larger value of trade flows. Nevertheless, whereas access to capital has much increased during the last two decades, trade economists tell us that the number of bilateral trade relationships remained unchanged or increased at a much lower rate. This paper investigates the role of financial development on the intens...

Abstract Using a large sample of listed firms from 72 countries over the period 1990–2019, we document marked decrease in trade credit that is more pronounced for developed economies relative to those emerging economies. We find little evidence firm characteristics drive this trend, as their relation with remains relatively stable throughout period. test several competing propositions and listi...

The influential papers on the effect of credit constraints on growth and international trade (Rajan and Zingales, 1998; Manova, 2013) tend to assume that asset tangibility and the share of external borrowing are exogenous industry characteristics, which are timeand country-invariant. In the finance literature, however, the share of external borrowing is viewed as endogenous and dependent on the...

  The paper uses economic and energy data analysis and econometric modeling to study the prospects and challenges of Korea’s 2003 FTA Roadmap (MOFAT 2013) in the form of potential comprehensive partnerships with its major trade and energy partners. It first reviews Korea’s international economic and trade relations in recent years with a focus on its major merchandise export destinations an...

2 reduction in transport costs, the wide range of international agreements to facilitate trade and, in particular, by the spread of global and highly effective information and communication technologies. These changes contributed, in turn, to wider changes in the structure of international trade. The paper examines the forces that drove these changes and their impact on the less developed count...