This paper presents a New Economic Geography model with distortionary taxation and endogenized trade costs. Tax revenues finance a public good, infrastructure. We show that the introduction of costly public investment in infrastructure increases agglomerative tendencies. With respect to the regions’ sizes, in the periphery, the price-index for manufacturing goods decreases, whereas for the core...

Technology spillover from trade channel is important. Absorbing foreign technology by the channel of importation and using the latent technology in those products create export development, increase the quality and quantity of manufactured goods, and modify management, technology improvements and production of goods with high added value; this might favorise optimal allocation of resources. Imp...

Developing a three-sector and four-factor general equilibrium model, this paper offers an explanation of wage inequality in a vertically fragmented production structure typical of off-shore outsourcing to developing countries like China or India. The model characterizes a typical developing economy where intermediate good is produced using capital and local low-skilled worker, traditional secto...

In this research, the DCC model is estimated to calculate dynamic correlation series between crude oil price and growth of Industry and Mine sector during 1367:1-1392:4. Then, Macroeconomic variables which can explain the dynamic correlation are analyzed as variables of contagion. So, the import, as an effective and affected variable from crude oil price, is separated to real import of consumpt...

The aim of the paper is to study the relationship of individuals’ sport goods consumption to personal income and relative sport price in Hungary in the period 1992-2006. It is shown, that the trend of the real sport goods consumption in conjunction with real income decreased till 2000 and it has been increasing since then. Income and price elasticity figures for both periods show, that sport go...

The practice of making hedonic-based price adjustments to remove the effects of quality changes in goods and services that enter into the calculation of the U.S. Consumer Price Index (CPI) has to date focused primarily on indexes for consumer electronics, appliances, housing, and apparel. In an effort to expand the use of hedonic adjustments to a service-oriented area of the CPI, this article i...

Since some raw materials, semi manufactured, intermediate and capital goods in agricultural sector are imported, the exchange rate fluctuations can affect the cost price of products in this sector. Recently, we are facing considerable fluctuations in exchange rate that has an important impact on all sectors including the agriculture. As a result of an increase in import prices in agricultural r...

Do rich and poor countries export the same goods to the US? Using highly disaggregate trade flow data – which breaks US imports into thousands rather than tens of goods – this paper documents two significant trends. First, the number of US imports originating in either rich or poor countries exclusively has fallen dramatically as the world has globalized, from 50% in 1972 to 25% in 1994. This g...

virtual water adds a new dimension to crop trades and provides a new way of thinking about water scarcity. a systematic analysis of virtual water flows requires integration of all critical drivers of virtual water flows under a single consistent framework. the aim of this study was to assess virtual water flows related to trades of grain crops (wheat, corn, rice, and coarse cereals) and their i...