The allocation of production across firms is a potentially important explanation of the productivity gap between rich and poor economies. Reforms to trade policy and the domestic financial sector are often both key elements of policy packages aimed at reducing productive distortions. However, the impact of each reform in reallocating production within an economy is usually analysed independentl...

This paper tries to analyze the impacts of intermediate goods trade on production, consumption, investment, net exports, employment, labor wage and capital rent of Iran in its bilateral trade relations with China. This analysis has been done by modeling, solving and calibrating an international real business cycles (IRBC) model in period 1980-2009. The results show that when elasticity of subst...

The consequences of free trade are investigated in an international duopoly under horizontal di¤erentiation and convex transportation costs. It is shown that the smaller country may bene...t from trade if it is su¢ciently small to allow for a signi...cant volume of exports by the domestic ...rm. On the contrary, the larger country never bene...ts from trade, since liberalization decreases the d...

The allocation of production across firms is a potentially important explanation of the productivity gap between rich and poor economies. Reforms to trade policy and the domestic financial sector are often both key elements of policy packages aimed at reducing productive distortions. However, the impact of each reform in reallocating production within an economy is usually analysed independentl...

I construct a theory of trade agreements in which nations negotiate over both domestic policies and trade policies in a monopolistically competitve setting. My theory contributes to two trade policy questions: …rst, what problems do trade agreements solve? Second, what explains the evolution of domestic subsidy rules between the GATT and the WTO? I show that trade agreements must solve a …rm-de...