Empirical evidence confirms that trade exposure can shift resources towards the most efficient firms in an industry and induce substantial increases in aggregate productivity. Although recent studies document that much of world trade is controlled by multinational firms, few examine the effect of foreign direct investment decisions on resource allocation and aggregate productivity. This paper p...

The main focus of this review is on international trade and foreign direct investment when the institutions that provide the security of property rights and enforcement of contracts are imperfect. Some issues of national security related to poor governance of international transactions are also considered. The discussion organizes a selective overview of the literature and offers some suggestio...

We examine the hierarchical structures of Turkey’s foreign trade by using real prices of their commodity export and import move together over time. We obtain the topological properties among the countries based on Turkey’s foreign trade during the 1996–2010 period by using the concept of hierarchical structure methods (minimal spanning tree, (MST) and hierarchical tree, (HT)). These periods are...

In popular discussion much has been made recently of the susceptibility of government policies to lobbying by foreigners. The general presumption has also been that such interactions have a deleterious effect on the home economy. However, it can be argued that, in a trade policy context, bending policy in a direction that would suit foreigners may not in fact be harmful: If the policy outcome a...

We examine the portfolio turnover of mutual funds from 29 countries across the world and for the period 1999 to 2004. Our results indicate that turnover in foreign securities is higher in the countries that are less developed, have less investor protection, have lower information disclosure standard, and are less familiar to the fund managers. The negative relationship between turnover in forei...

one of the principal challenges before economical progress and development is governmental monopoly and economical structure. the root of this dilemma is from historical backgrounds and codification our constitution. upon article 44 all of the important economical activities in especial foreign trade belong to the government. but at the end of this article; there is an important clause; it says...

[Foreign trade involves tasks that may be subject to language barriers, such as researching foreign markets, communicating with counterparties and marketing products to foreign consumers. Language skills have a wage premium that is determined by local and worldwide supply and demand for language services, and the premium is specific to each country and pair of languages. I construct a novel mea...

This paper develops a model of the black market for foreign exchange in which black market currency is demanded and supplied by tirms engaged in smuggling. It is demonstrated that quotas or foreign exchange rationing are not necessary to induce the coexistence of legal and black foreign exchange markets. Variants of the model analyze the implications of capital flight, unbalanced trade, quotas,...