——————————————————————————————————— We study optimal portfolio choice in a two-country model where assets represent claims on future consumption and facilitate trade in markets with imperfect credit. Assuming that foreign assets trade at a cost, agents hold relatively more domestic assets. Consequently, agents have larger claims to domestic over foreign consumption. Moreover, foreign assets tur...

~ S national economies have become increasingly inter-related, national governments have broadened their efforts to coordinate trade-related policies. For years GATT negotiators concentrated on tariff reduction and trade liberalisation. The recently completed Uruguay Round negotiations included a number of agreements in previously uncharted waters (e.g., agreements on government procurement, tr...

This paper provides empirical evidence for the interaction between firm-level total factor productivity and trade liberalization as key determinants of firm-level job destruction caused by trade. We also test some key theoretical predictions from Melitz (2003), whose model is used to derive an explicit equation relating firm productivity and trade-induced labor layoff when a country liberalizes...

present paper is an attempt to estimate the impact of economic and geographic indicators in trade among islamic countries according to a bilateral trade model as gravity model, and study the relationship between economy, geography and trade in this way. fixed effect version of the panel data estimation producer with oic member country data spanning over the 2007–2012. the result of this researc...

In this study, we apply the inter-regional input–output model to explain the relationship between China’s inter-regional spillover of CO2 emissions and domestic supply chains for 2002 and 2007. Based on this model, we propose alternative indicators such as the trade in CO2 emissions, CO2 emissions in trade and the regional trade balances of CO2 emissions. Our results do not only reveal the natu...

In this paper I consider how the structure of domestic tax policy can a¤ect trade policy when the former is determined through voting by the public and the latter through lobbying by …rms. I …nd that in these circumstances trade policy may be more liberal due to the pressures placed on the lobbying capabilities of …rms by the use of domestic taxes. In particular a domestic income tax reduces th...

We provide an ex-post econometric examination of the harmonization and tightening of the EU Maximum Residues Limit (MRL) on aflatoxins in 2002, and its impact on African exports of groundnut products. We show that the MRL set by the EU has no significant trade impact on groundnut exports from Africa across various methods of estimation. African domestic supply plays an important role in the det...

In this paper we consider whether a movement towards freer international trade generates incentives for firms to merge and if so what forms of merger are most profitable. In a linear Cournot framework we show that a reduction in trade costs may, but will not necessarily, encourage mergers. Both market structure and the level to which trade costs fall are shown to play a decisive role. Domestic ...

We examine the interaction between trade in goods and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving import patterns of 21 OECD countries. This points to significant linkages between effective market-access conditions for goods and the structure of the service sector. ...

This paper examines conditions under which domestic political institutions mediate the effect of trade competition on regulatory races in the environmental area. We focus on the role of domestic veto players in shaping governments' policy responses to trade competition which are reflected eventually in air (Sulphur dioxide, SO2) and water pollution (Biochemical Oxygen Demand, BOD) intensity lev...