This paper analyses the determinants of outward processing (OP) trade; specifically, imports of intermediates subsequent to processing abroad. A model where firms choose between OP and importing intermediates directly from a third country (generic offshoring, GO) predicts higher tariffs, lower monitoring costs and higher quality make OP more likely, while better institutions and rule of law abr...

This paper investigates the impact of acquisition FDI on exporting intensity in U.K manufacturing. A quasi-likelihood estimation method is used, and the empirical estimates point to the following conclusions: (i) UK firms with higher exporting intensity are more likely to be foreign takeover targets; (ii) US acquired firms increase their exporting intensity, consistent with the idea that acquis...

Financial constraints have been found to play an important role on various aspects of firm behavior. Yet, their effects on firm survival have been largely neglected. We use a panel of 61496 UK firms over the period 19972002 to study the effects of financial variables on firms’ failure probabilities, differentiating firms into globally engaged and purely domestic. Estimating a wide range of spec...

This paper infers the terms of trade effects of Free Trade Agreements (FTAs) implemented in the 1990s. We estimate large FTA effects on bilateral trade volume in 2 digit manufacturing goods from 1990-2002, using panel data gravity methods to resolve two way causality. The terms of trade changes implied by these volume effects are deduced for 40 countries plus a rest-of-the-world aggregate using...

In a world where poor countries provide weak protection for intellectual property rights, market integration will systematically shift technical change in favor of rich nations. For this reason, free trade can increase international income differences. At the same time, integration with countries where intellectual property rights are weakly protected can have a large adverse effect on the worl...

In this paper we consider three questions. Why do only some firms enter export markets? What are the benefits to the firm from export market entry? Why do some of these firms exit the market at a future date? Using data on UK manufacturing firms from 1988 to 2002 we find evidence that information spillovers between firms can raise the probability of entry and for a matched sample of firms there...

The purpose of this paper is to examine the relationship between export barriers and the export performance of Greek firms targeting the Iranian market. Reviewing the literature and using expert opinions, 18 variables were identified. A structured questionnaire was applied to 141 Greek firms and exploratory and confirmatory factor analyses were used to categorize variables in 6 dimensions. Then...

This paper focuses on the question of whether labour standards can affect comparative advantage in unskilled-labour-intensive goods, and thereby influence trade flows. Using a Heckscher-Ohlin framework, the effects of low labour standards depend on the type of standard: Forced and child labour lead to an increase in the endowment of unskilled labour, and hence improve comparative advantage in u...

Recent studies have challenged the view that trade openness leads to more specialization in countries’ trade. Using a panel of 116 countries over 35 years, we show that openness can be positively associated with both specialization and diversification, depending on the measure used. Moreover, for developing countries in our sample, the effect of openness on trade structure depends on the type o...

More than half of all US import relationships begin with less than $10,000 annually. The median relationship is observed to last just one year. The incidence and duration of these relationships are consistent with a search model of international trade. The preponderance of small starting relationships reveals uncertainty present in formation of trade relationships. Initial size, reliability, an...