In this paper, we model a manufacturing and transport sector use export volumes to determine the demand for services. If trade exceeds particular level, service suppliers maximise profit by investing in an advanced technology, which lowers their marginal costs reduces equilibrium prices. Transport thus vary according two characteristics: distance between locations endogenous firm decision inves...

We develop a model of endogenous quality choice and trade that combines non-iceberg trade costs and non-homothetic preferences to capture the effect of importer-exporter income differences on geographic variation in quality and export prices. The differences in income substantially alter the effect of trade costs on quality. The incentive to trade high quality goods given high trade costs (the ...

The increase of greenhouse gases (GHG) in which CO2 emissions constitute the principal component, is of major environmental problems of all societies. Economic growth impels intensive use of resources and as a result, more residues and wastes thrown in the nature that could lead to environmental degradation. This article tries to trace the eventual relationship between trade openness and enviro...

this study examins effects of trade liberalization on the wage inequality across industries and between genders within these industries by utilizing the data of micro-level households’ income and expenditures surveys and trade statistics over 2001-2011. the analysis is carried based on the heckscher–ohlin’s theory in international trade and baker’s taste discrimination theory at firms. we use q...