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...

The study investigates the effect of macroeconomic determinants on the performance of the Indian Stock Market using monthly data over the period January 1991 to December 2011 for eight macroeconomic variables, namely, Interest Rate, Inflation, Exchange Rate, Index of Industrial Production, Money Supply, Gold Price, Silver Price & Oil Price, and two stock market indices namely Sensex and S&P CNX...

Using a sample of province-level panel data, this paper investigates the Granger causality associations among economic growth (GDP), foreign direct investment (FDI) and CO2 emissions in China. By applying the bootstrap Granger panel causality approach (Kónya, 2006), we consider both cross-sectional dependence and homogeneity of different regions in China. The empirical results support that the ...

This paper presents a new empirical strategy for estimating the effects of trade policy on domestic factor prices when policy endogeneity is suspected. Absent income effects on factor supplies or domestic prices, the coefficient on the terms of trade can provide an unbiased estimator of the effect of trade barriers on the factor distribution of income for a small economy. In the more general ca...

Despite the predictions of standard trade theory, countries in the North are not indifferent between free migration and free trade. Explanations include the redistributive policies of the welfare state (Wellisch and Walz, 1998, this Review). This paper offers an explanation using the concept of social capital and extends the analysis to the South. The movement of people differs from the movemen...

It is often observed that in order to serve the domestic market, foreign firms not only export but also control domestic firms through foreign direct investment (FDI). This paper examines the effects of tariffs, production subsidies, and foreign ownership regulation on prices, outputs, profits, and welfare when both exports and FDI coexist. Cross-border ownership on the basis of both financial ...

Article history: Received 29 June 2013 Received in revised form 18 November 2013 Accepted 19 November 2013 Available online 12 December 2013 Constructing a duopoly model with non-constant marginal costs and a strict Pareto criterion, this paper examines welfare effects of world-price-fixing tariff reductions accompanied by adjustments of a domestic tax. If a destination-based consumption tax is...

We revisit the cost of the U.S. sugar program by analyzing the welfare implications of its removal. We use a multimarket model of U.S. sweetener markets, which includes raw crops, sugar extraction and refining, high-fructose corn syrup, and sweetener users (food-processing industries and final consumers). Our approach addresses the industrial organization of food industries using sweeteners and...

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...