We study the case where parallel trade (PT) stems from government price controls in a foreign country. We remove the presumption that PT blunts dynamic efficiency if the government has partial commitment ability. We model the R&D firm’s option to serve the foreign country, and find that PT may improve quality, depending on preferences for quality. Improving quality may be a sufficient condition...

Among non-oil exports and in trade arena, drug has always been strategic importance and most government especially industrialized countries pay special attention to its production and trade issues. Thus, having a comprehensive view from economic perspective to this section is essential for suggesting intervention. This was a descriptive-analytical and panel study. In this study, gravity model i...

Preferential trade agreements (PTAs) have become an increasingly prominent feature of the international trade environment, with salient examples being the widening and deepening of the European Union (EU), the success of the Mercosur, and the formation of the North American Free Trade Association (NAFTA). In fact, a majority of the active agreements notified to gatt through 1995 were signed in ...

Preferential trade agreements (PTAs) on services have proliferated since 2000. This working paper briefly presents the expansion of the dataset initially developed in Marchetti and Roy (2008). The data permits to assess the extent to which market access commitments undertaken by WTO Members in PTAs go beyond GATS commitments and offers made in the context of the Doha Development Agenda. The dat...

This paper investigates the impact of the US and China’s foreign aids to Africa on trade flows between donor and recipient countries. Evidence from the gravity model estimates reveals that the two donors’ exports are strengthened by their aids to African partners. Interestingly, China’s aid shows a positive effect on its total volume of trade and imports from Africa, while the aid from the US e...

This paper is concerned with the Trade Policy Review Mechanism (TPRM), an important policy review function of the WTO. From a developing country perspective, a truly effective TPRM should accomplish several interrelated goals which together should add up to a boost to investor confidence in developing country markets. Several improvements that may move us closer to such a regime are discussed. ...

We explore the consequences of placing the Standard Model gauge fields in the bulk of the recently proposed localized gravity model of Randall and Sundrum. We find that the Kaluza Klein excitations of these fields are necessarily strongly coupled and we demonstrate that current precision electroweak data constrain the lowest states to lie above ' 23 TeV. Taking the weak scale to be ∼ 1 TeV, the...

1. South Africa: Summary of faultlines and action points