This paper examines how trade liberalization affects the innovation incentives of firms, and what this implies for industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through changes in R&D investment, a...

The main objective of this paper is to review the theoretical issues and available empirical evidence on capital account liberalization. In addition to being of interest in its own right, capital account liberalizations is important to the debate on the New International Financial Architecture (NIFA) and to the post-Doha agenda at the World Trade Organization (WTO) in relation to foreign direct...

from chronic food insecurity (World Food Program, 2010). One third of the population is food insecure, the most vulnerable of whom are women and children. International Financial Institutions (IFIs), including the International Monetary Fund (IMF), the World Bank (WB) and the InterAmerican Development Bank (IDB), have severely undermined Haiti’s ability to improve food security and reduce hunge...

This paper examines e¢ cient paths of trade liberalization in a symmetric two country model where countries choose a (cooperative) trade agreement that maximizes national welfare, subject to the constraint that capital initially located in the import-competing sector receive some compensation for losses from liberalization. If lump sum transfers are available to compensate capital owners, free ...

Rising international trade flows are a primary component of globalization. The liberalization of trade policy in many developing countries has helped foster the growth of these flows. Preceding and concurrent with this move to free trade, there has been a global movement toward democracy. We argue that these two trends are related: democratization of the political system reduces the ability of ...

In this paper the authors develop an innovative 21 sector computable general equilibrium model of Armenia to assess the impact on Armenia of a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, as well as further regional or multilateral trade policy commitments. The authors find that a DCFTA with the EU will likely result in substantial gains to Armenia, but they show that the ga...

Recent widening of the wage gap between skilled and unskilled workers has been attributed mainly to skill-biased-technical-change and to trade liberalization. This paper examines the effects of the two in a unified model, in which trade and technology adoption are endogenous. The paper has two main results. First, technical progress increases the wage gap in developed and in less developed coun...

concerns regarding the trans-pacific partnership (tpp) have raised awareness about the negative public health impacts of trade and investment agreements. in the past decade, we have learned much about the implications of trade agreements for public health: reduced equity in access to health services; increased flows of unhealthy commodities; limits on access to medicines; and constrained policy...

This paper explores the impact on economies of trade liberalization under alternative regional and multilateral arrangements: unilateral liberalization; liberalization as part of the ASEAN regional grouping; liberalization as part of the APEC regional grouping; or liberalization as part of a multilateral trade liberalization regime. The paper is based on a Dynamic Intertemporal General Equilibr...

The current study attempts to investigate whether economic liberalization influences employment in Pakistan or not. Despite the traditional analysis, our has employed multiple indicators of (trade liberalization, foreign direct investment, and remittances) checked effect each indicator on level. Time series annual data for period 1980 2018 been used empirical analysis. After checking stationari...