This paper presents a specific factor model of a small open economy to show the factor price effect and welfare effect of offshoring. Different to ambiguous wage effect conclusions of offshoring under Heckscher-Ohlin framework, the conclusions of this paper is clear-cut. Offshoring will benefit specific factor (skilled labour and land), hurts some non-specific factor (unskilled labour), and enl...

Abstract T his paper explains bilateral trade patterns between South Korea and thirteen OPEC member countries over the period 1980-2014 using a gravity model. The estimation results show that the gravity equation fits the data reasonably well. We confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - ...

In this paper, we study the stability of equilibrium for a foreign trade model consisting of three countries. As the gravity equation has been proven an excellent tool of analysis and adequately stable over time and space all over the world, we further enhance the problem to three masses. We use the basic Structure of Heckscher–Ohlin–Samuelson model. The national income equals consumption outla...

Abstract This study aims to understand the criteria that influence decision-making process of selecting startups have innovated successfully. In this article, kind selection was made by venture capital enterprises. We studied view investors, professionals, and startup entrepreneurs interviewed. present actual global characteristics main cities where innovation takes place modernism critical asp...

All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including O notice, is given to the source. There are two principal theories of why countries trade: comparative advantage and increasing returns to scale. Yet there is no empirical work that assesses the relative importance of these two theories in acc...

This paper investigates the determinants of intraindustry trade IIT , horizontal IIT HIIT , and Vertical IIT VIIT in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union EU-27 was examined, between 1995 and 2008, using a dynamic panel data. We apply the GMM system to solve the problems of serial correlation and the endogeneity of some explanatory...

Using data from the US commodity flow surveys, we show that the historical UnionConfederacy border lowers contemporaneous trade between US states by about 16 percent relative to trade flows within the former alliances. Amongst one million placebos, there is no other constellation of state grouping that would yield a larger border effect. The finding is robust over different econometric models, ...