This paper considers a world of two symmetric countries with two factors and two sectors. Outputs of the two sectors are imperfect substitutes and sectors differ in relative factor intensity. Each sector contains a continuum of heterogenous firms that produce differentiated goods within their sector. Trade is costly and there are both variable and fixed costs of exporting. The paper shows that ...

In this study we investigate purchase behavior for virtual goods in three free-to-play game environments. In the modern free games, publishers sell virtual goods in order to generate revenue. However, game publishers face dire negative attitudes toward the business model as it can entice publishers to degrade the enjoyment of the game in order to sell more virtual goods that address the artific...

Turkey adopted an export-dependent growth strategy after the 1980 liberalization. In later years, with impact of this strategy, Turkey's export structure and performance became a subject investigation. Thus, when is evaluated, dependence oriented industries on capital goods, intermediate energy remarkable. Therefore, in study, development import-based exports between 1996:1 2018:4 was tested by...

To understand the longer-term consequences of natural disasters for global value chains, this paper examines trade in automobile and electronic sectors after 2011 earthquake Japan. Contrary to widespread expectations, we find that shock did not lead reshoring, nearshoring, or diversification across non-Japanese suppliers; intermediate products was disrupted less than final goods. Imports shift ...

The issue of child and forced labor employed in the production goods has been at a forefront public debate recent decades with millions victims nearly all countries being affected. This paper examines whether information about use affects their imports to United States. I investigate this question using largest naming shaming strategy ever implemented world-wide: inclusion on U.S. government’s ...

Abstract We develop a simple two-sector neoclassical growth model in which the upstream sector produces intermediate goods, and downstream final goods with outputs from upstream. While features perfect competition, firms engage Cournot competition charge markup. show that deregulation introduction of not only increases productivity but also has substantial spillover effect on factor prices. cal...

A salient feature of globalization in recent decades is the emergence of “global supply chains” in which different countries specialize in different stages of a sequential production process. In Arnaud Costinot, Jonathan Vogel and Su Wang (2011), CVW hereafter, we have developed a simple theory of trade with sequential production to shed light on how global supply chains affect the interdepende...

It is well known in the economic literature that labour supply curve can bend backwards and, therefore, leisure be a Giffen good. also normal This article proves if good, it has to result that, contrary common knowledge economics, not all goods, are inferior goods. These results could taken into account, for example, when finding empirical evidence and designing policies on supply, an era of ma...