Article history: Received 3 March 2009 Received in revised form 14 July 2009 Accepted 3 September 2009 Available online 14 October 2009 Tariffs and anti-dumping duties are two important tools used to protect industries from foreign competition and to generate revenue. While the two tools have been studied extensively in separate contexts, little is known about their comparative effects. This pa...

We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize the analysis of Arkolakis, Costinot and Rodriguez-Clare (2012) to encompass revenue-generating import tariffs. Our formula permits easy quantification...

This paper develops a model of FDI with reverse imports examining the impact of FDI on the home economy through the “hollowing out” effect on the domestic employment. A foreign wage threshold exists. If the foreign wage is lower than the threshold, the home firm chooses FDI. The threshold depends on a FDI fixed cost and a demand parameter. A welfare analysis shows that another foreign wage thre...

In this paper, we first present a simple theoretical model of globalization between similar countries to motivate the empirical work that follows. Specifically, we examine the linkages between trade volumes and relative wages in a specialization model along the lines of Ethier (1982). The core of the empirical analysis involves bivariate time-series analysis. There we find some evidence of a re...

JEL Classification Code(s): J 31, J 71) "Perceptions of Discrimination, Effort to Obtain Psychological Balance, and Relative Wages: Can We Infer a Happiness Gradient?" There is a substantial literature that finds a linkage between happiness and relative economic well being as measured by earnings or wages. There is also a well documented racial gap in wages. One explanation for this is disparat...

By employing a model with international trade costs and imperfect competition, in which a domestic firm serves both the domestic market and the foreign market, we show that intraindustry trade compared to intersectoral trade is globally, but not mutually, welfare improving. When also foreign firms become active, competition strengthens but domestic welfare declines, because domestic consumers h...

To quantify trade frictions, we examine multiproduct exporters. We build a flexible general-equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand access cost shocks. Our estimates show that additional products farther from firm’s core competency come at higher production costs, but there are substantive economies of scope in costs. Mar...

â â â  â â â â â â  â  abstract â  based on the recent literature of heterogeneous firms, productive firms self select themselves into foreign markets. in this framework, there is a productivity rise prior to exporting. on the other words, different export performance across firms is linked to their heterogeneity. â  the main purpose of the present paper is to examine the so-called hypothesis o...

We present new techniques to produce IRAS 12 μm samples of galaxies and stars. We show that previous IRAS 12 μm samples are incompatible for detailed comparison with ISO surveys and review their problems. We provide a stellar infrared diagnostic diagram to distinguish galaxies from stars without using longer wavelength IRAS colour criteria and produce complete 12 μm samples of galaxies and star...