A large share of world trade, especially among the OECD countries, is two-way trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products within industries, whereas they import others. We examine this issue, by means of regression analysis, by examining the shares of IIT that are vertical and horizontal and by ...

We revisit a framework of con‡ict in a canonic open economy model to examine appropriate policy responses. We derive further implications of the framework, we link them to other results in the literature, and we explore the scope and limits of the analogy between policy analysis in a con‡ict economy and the policy analysis under distortions o¤ered by the traditional trade literature. We rank al...

We explore the consequences of international trade in an economy that encompasses technology choice and an endogenous distribution of mark-ups due to credit market frictions. We show that in such an environment a gradual opening of trade may —but not necessarily must —have a negative impact on productivity and overall output. The reason is that the pro-competitive effects of trade reduce mark-u...

This paper takes the neoclassical infant industry model, allows agents to respond to future expectations, and reveals previously unexplained relationships between protection and outcome. Policy, which projects to protect the industry until international competitiveness, may not necessarily succeed, consistent to the mixed empirical evaluations. To guarantee success, protection has to last longe...

This paper examines interbrand competition between a domestic and a foreign manufacturer who market their products through intermediaries. The contracts manufacturers offer these intermediaries are endogenous. In equilibrium contracts may specify exclusive territories (ET), depending on the degree of substitutability between products and the level and degree of transparency of trade barriers. T...

We examine the effects of mergers and internal groups (lobbies) in shaping national policies towards foreign direct investment. Lobbying is modeled following the political contributions approach. In this work we develop a partial equilibrium model of an oligopolistic industry in which a number of domestic and foreign firms compete in the market for a homogeneous good in a host country. It is as...

Article history: Received 8 December 2011 Received in revised form 6 August 2012 Accepted 7 August 2012 Available online 21 August 2012 This paper studies the intellectual property protection in a global setting where the protection is based on the patentability requirement. When two countries with similar research efficiencies open trade with each other, the world patentability requirement wil...