Regionalization is a part of globalization and a dynamic process of marching towards globalization. The so-called NADEs (Northeast Asia’s Dynamic Economies) including Japan, Korea and China are expected to lead economic growth in the Asia-Pacific region. This paper analyzes the trade and investment relationships among the three countries, points out the necessity for their technological coopera...

A two-country, game-theoretic framework focuses on the nexus between human capital formation and international migration in an enlarged framework where distinctive brain drain and/or gain effects can arise from the option to study either at home, or abroad. Heterogeneous individuals choose between alternative university systems based, among other considerations, on their innate abilities, the q...

In this paper, we focus on how European economic integration has affected the synchronization and the magnitude of business cycles among participating countries. We measure, based on bandpass filtered data, the characteristics of European business cycles analyzing to what extent they have become more similar over time. We also consider the role of other factors such as differences in fiscal and...

This paper discusses the political economy behind the principal trade policy decisions in Russia since independence. I discuss why export restraints were widely employed in the early transition years and why the export quotas proved more difficult to remove than anticipated. Why it was so difficult to resolve the monetary basis for the collapse in trade among the newly independent states. Why t...

Building on the experience of NAFTA, and assuming that rules of origin (RoO) negotiated under NAFTA are likely to resemble those that would be agreed upon in an FTAA, this paper discusses how different RoO criteria would affect different Southern partners in a multi-stage production setting. Next, we use a combination of parametric and non-parametric methods to estimate the costs of RoO under N...

Maritime transportation is one of the most important services in the international trade, especially for international cargo transportation. Literature reviews extract several components of trust and commitment for study. Theoretical foundations are drawn from the commitment-trust theory of relationship marketing to find out the key factor, the relationship result of cooperation. A conceptual m...

There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade models. This introduction has highlighted the importance of the entry/exit decision of firms in response to changes in trade barriers. However, it is typical in many of these models to use iceberg transport costs as a general form of trade barriers that can be interchangeable wi...

This paper examines a simple model of outsourcing involving matching frictions and home bias in firms’ acquisition of intermediate goods. Two groups of seller firms—local sellers and foreign sellers—may face different degrees of search frictions even though they are identical in terms of productivity. Two groups of buyer firms are considered: one group accepts local and foreign sellers equally,...

We investigate a mechanism whereby a group of nations forming a free trade area simultaneously can efficiently satisfy industrialization targets. The mechanism does not rely on cross-country transfers, and it is efficient for each member country individually even if other members of the free trade area do not implement the efficient policy. It allows each member country to gain from participati...

This paper indicates that the consequences of regional trade agreements for the world trade system may be deceiving—an arrangement’s apparent virtue may constitute the source of its drawback. In a model where governments have political, as well as economic, motivations, I show that a free trade area induces its members to reduce protection against the non-members, and to do so sufficiently deep...