This paper studies the e¤ects of international openness and contracting institutions on vertical integration. It …rst derives a number of predictions regarding the interactions between trade barriers, contracting costs, technology intensity, and the extent of vertical integration from a simple model with incomplete contracts. Then it investigates these predictions using a new dataset of over 14...

Cigarette smuggling reduces the price of cigarettes, thwarts youth access restrictions, reduces government revenue, and undercuts the ability of taxes to reduce consumption. The tobacco industry often opposes increases to tobacco taxes on the claim that greater taxes induce more smuggling. To date, little is known about the magnitude of smuggling in the Philippines. his information is necessary...

This paper investigates whether investors’ domestic experience helps them enter foreign markets. We show that investors first invest in domestic securities and only some time later they invest abroad in foreign securities. We also show that investors who trade more often in the domestic market start to invest abroad earlier. Our findings suggest that the experience investors acquire while they ...

The financial aspects of Foreign direct investment (FDI) are the focus of this paper. The gains from trade argument (applied to intertemporal trade) is re-examined in this case of informational-asymmetry-driven FDI. FDI is observed to be a predominant form of capital flows to emerging economies, especially when they are liquidity-constrained internationally during a global financial crisis. We ...

The effective factors on the economic growth of Iran during the first 5-year development plan are studied. The main characteristics of this period are that the first development plan began after the end of war during which some of the unused capacities of the war period were utilized. While the budget deficit was continued in this period the government also pursued policies such as devaluation ...

We explore the effects of environmental and trade policies with negative consumption externalities when a domestic firm and a foreign rival produce imperfect substitutes and compete in the domestic market. Consumption of the foreign product generates more emissions than that of the domestic product. Emission taxes reduce emissions, harm the foreign firm, but may benefit the domestic firm. Tarif...

A Negative Binomial Regression Model is used to investigate the sustainability of China–Mexico trade liberalization by testing the tariff lines underpinning Mexico’s successful antidumping (AD) measures against Chinese imports from 1991 to 2011. Evidence shows import tariff cutting and consumption growth have a positive impact on consumer goods but a negative impact on intermediaries. This resu...

This paper presents a new empirical strategy for estimating the effects of trade policy on domestic factor prices when policy endogeneity is suspected. Absent income effects on factor supplies or domestic prices, the coefficient on the terms of trade can provide an unbiased estimator of the effect of trade barriers on the factor distribution of income for a small economy. In the more general ca...

This paper examines the reform outcome of the Uruguay Round relating to trade in agriculture, the nature of the unfinished reform agenda and policy choices for the Doha Round, with special emphasis on the position of developing in trade negotiations. A key policy inference is that, to be effective, agricultural trade liberalisation should involve simultaneous reforms of the trade regime and dom...