This paper examines how a tariff affects firms’ efforts to produce safer foods that are supplied to consumers whose preference for safety of foods are different. I analyze the optimal trade policy for importing country that can impose a tariff or a subsidy on the foods. I show that the raise in tariff rate makes importing country’s firm chooses less effort to produce safer foods but foreign fir...

the primary goal of any economic policy in the production front is, as far as possible to enhance the degree of sectoral interrelatedness (henceforh si) within the home economy. the focal objective of such policy is not only to increase the sectoral value added of the economy but also to improve the position of the trade balance in the commodity trade front. iran, being characterized a sole mon...

This paper examines one of the basic tenets of UK industrial policy, that attracting inward investment into the UK stimulates domestic productivity growth. A model of productivity growth is developed for the indigenous sector of UK manufacturing, linking domestic productivity growth to theoretical explanations of inward investment. The paper demonstrates that inward investment does stimulate pr...

The objective of this research paper is to examine the effects of various economic factors on Foreign Direct Investment (FDI) inflow into Pakistan. For econometric analysis secondary data ranging from 1971 to 2005 have been used. Log linear regression model and the method of Least Square were used as an analytical tool for the empirical estimation. In addition, for time series data analysis Aug...

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...

The macroeconomic implications of oil price fluctuations vary according to their sources. Our estimated two-country DSGE model distinguishes between country-specific oil supply shocks, various domestic and foreign activity shocks, and oil efficiency shocks. Changes in foreign oil efficiency, modeled as factor-augmenting technology, were the key driver of fluctuations in oil prices between 1984 ...

The purpose of this paper is to examine the allocation of the FDI flows in the East Asian region among Southeast Asian countries and China. In addition, it will also investigate the role of the public policy and the private firms during the foreign direct investment process in 1990s. In particular, we will emphasize the Taiwan case, since Taiwan has been one of the main contributors in this reg...

This paper examines the preferences of foreign and dometic institutional investors in Indian stock markets. Foreign and domestic institutional investors both prefer larger, widely dispersed firms and do not chase returns. However, we find evidence of strong differences in the behaviour of foreign and domestic institutional investors. Foreign investors prefer to buy private, liquid, young and gl...

Building on previous literature, we assess when foreign aid is effective in fighting terrorism using quantile regressions on a panel of 78 developing countries for the period 1984-2008. Bilteral, multilateral and total aid indicators are used whereas terrorism includes: domestic, transnational, unclear and total terrorism dynamics. We consistently establish that foreign aid (bilateral, multilat...

a country’s foreign policy is greatly influenced by various internal, regional, trans-regional, and international factors.  in recent years china has adopted a peaceful foreign policy.  this paper aims to analyze the continuity of china’s peaceful foreign policy in the 21st century, and identify the most influential factors of the policy.  this paper will argue that china’s peaceful foreign pol...