In this paper we analyze some policy implications of incompleteness of markets in trade models, where there is both inter-spatial and intertemporal trade between countries. We interpret the absence of intertemporal trade as an absence of intermediation services provided by both domestic and foreign service providers. For simplicity, we consider extreme cases where intertemporal intermediation s...

This paper presents a model of international trade in differentiated intermediate goods. Because intermediates are invented through costly R&D investments, employing foreign intermediates implies sharing the return to R&D with the inventor country. I first derive a relation of how domestic productivity is related to foreign R&D investments. In the subsequent empirical analysis, industry level d...

In my article I have taken up different expressions for the terms of trade in foreign trade, and especially I have been interested in a breakdown of total gain into two parts, namely the part due to the terms-of-trade effects and the part due to the price level effects. I have also taken up the intersectoral gain from terms of trade and the relation to the terms of trade in foreign trade. Besid...

The enlargement of the European Union will bring many political, economical and structural changes on the Continent, which require careful and deep analysis to be made. This paper will grasp the enlargement of the European Union from the aspect of the trade pattern and trade specialization of six major European Union candidates; namely, Turkey, Bulgaria, Hungary, Romania, Poland and the Czech R...

China and ASEAN have been maintaining a relationship both cooperative and competitive in the textile trade. Due to its labor intensive feature and high dependence on foreign trade , the textile trade has received much attention after the 2008 financial crisis. The customs data (classified by the HS code) from year 2006-2009 is employed to research the impact of the crisis on the trade pattern o...

The United States has been pushing for foreign patent protection through free trade agreements and the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). A gravity model using panel data from 1993 to 2007 suggests that foreign patent protection has not significantly increased the United States’ trade of pharmaceuticals. Other factors are stron...

The business literature and recent descriptive evidence show that exporting firms typically require the help of foreign trade intermediaries or need to set up own foreign wholesale affiliates. In contrast, conventional trade theory models assume that producers can directly access foreign consumers. This paper introduces intermediaries in an international trade model where producers differ with ...

As more manufacturing is moved to the developing countries, policy makers become concerned with the environmental consequence. Relatively lenient environmental policies in the developing countries may give them a comparative advantage in pollution intensive goods, and openness to trade and foreign direct investment might harm the host country’s environment. This study examines the relationship ...