In this paper we present a model of endogenous trade-policy formation which captures crucial aspects of the Japanese commercial and political culture. We analyze the influence of the portrayed cultural traits and show that cultural idiosyncrasies are important determinants of trade policy formation; especially the complex interaction of the two types of cultures is shown to have significant con...

We examine South’s incentive to protect IPR in a North-South duopoly model where (i) the North firm owns a better technology and has the option of serving the South market via exports or FDI, and (ii) the South firm can invest in absorptive capacity to reduce the technology gap. While FDI by North firm makes absorption easier for South, investment in absorptive capacity by the South firm might ...

We study the effects of reforms in the legal scope of patent rights (PRs) on the international pattern of sectoral exports, before and after implementation of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement at the World Trade Organization (WTO), in a generalized factor-proportions framework. We find that, conditional on factor endowments and intensities, a country wi...

A key feature of the Swedish economy over last decade and a half has been the rapid internationalisation of its economy, both through FDI and trade. In this paper we consider the relationship between these two trends: whether the effect of increased inward FDI on exports by domestic firms may be positive or negative. The first case may occur as a result of demonstration effects. The second may ...

This paper analyzes the incentives for governments to impose export subsidies when firms invest in a cost saving technology before market competition. Governments first impose an export subsidy or a tax. After observing export policy, firms invest in cost reducing R&D and subsequently compete in the market. Governments subsidize exports under Cournot competition. Under Bertrand competition, exp...

To analyze the effects on prices of simultaneous tariff reductions by multiple importing countries, we construct a simple three-country model where a good is produced by a monopolist with non-constant marginal cost and imported by two countries. We specifically compare two representative tariff-reduction formulas: the "fixed-amount" and the "uniform percentage" reductions. The uniform percentag...

abstract:the paper begins by noting that proposals involving significant developments in the regional tradearchitecture are being developed within regional processes that in some cases are simultaneouslypursuing other dimensions of regional economic integration: monetary and financial cooperation inthe case of asean + 3, and the establishment of a common market in the case of asean. at leastthr...

We revisit a framework of con‡ict in a canonic open economy model to examine appropriate policy responses. We derive further implications of the framework, we link them to other results in the literature, and we explore the scope and limits of the analogy between policy analysis in a con‡ict economy and the policy analysis under distortions o¤ered by the traditional trade literature. We rank al...

A collapse in international trade following the 2007-08 crisis has underscored many dangers of globalization and renewed interest in trade protectionism, one form of which is import quotas. The analysis of import quotas is predominantly based on a static model, which is unable to capture the fact that a quota is imposed over a period of time. This article develops a continuous-time model that i...

The paper begins by noting that proposals involving significant developments in the regional tradearchitecture are being developed within regional processes that in some cases are simultaneouslypursuing other dimensions of regional economic integration: monetary and financial cooperation inthe case of ASEAN + 3, and the establishment of a common market in the case of ASEAN. At leastthree of the...