Empirical studies show that tradable consumption goods are more expensive in rich countries. This paper proposes a simple yet novel explanation for this apparent failure of the law of one price: Consumers’ utility from tradable goods depends on their consumption of complementary goods and services. Monopolistically competitive firms charge higher prices in countries with more complementary good...

This study examines the effect of banning antimicrobial growth promoters on efficiency in the production of weaned and slaughter (finishing) pigs. We focus on the reaction of producers and production efficiency. We evaluate the estimated output and input shadow prices relative to market prices to analyse producer reactions and capture the impact on production efficiency by evaluating the effect...

This paper examines price integration in the MERCOSUR countries of Argentina and Brazil after the creation of this regional economic agreement using a fractional cointegration analysis. The results suggest that Argentine wheat and corn prices are fully cointegrated with the corresponding world prices, whereas Brazilian wheat prices are not cointegrated with the world price. These results suppor...

foreign direct investment has been a key topic in development literature for a long time. many economists have written articles on the on recipient’s macroeconomic variables, transfer of capital and technology. the improvement of managerial and human resources, promotion of foreign trade with its emphasized role on economic growth of recipients. other economists have an opposite view. they have...

This paper discusses an input-output projection model which has been usedfor indicatz've planning of the West Malaysian economy into 1985. The model projects the structure of the economy including output, investment and labour in 1985 given a level ofaggregate domestic consumption likely to be utilised in the target year. The basic projection indicates that the growth rate in per capita private...

The aim of the paper is to investigate the main determinants of the bilateral virtual water (water used in the production of a commodity or service) flows associated with international trade in agricultural goods across the Mediterranean basin. We consider the bilateral gross flows of virtual water in the area and study what export-specific and import-specific factors are significantly associat...

In this paper we use micro data on both trade and production for a sample of large Chinese manufacturing firms in the footwear industry from 2002-2006 to estimate an empirical model of export demand, pricing, and market participation by destination market. We use the model to construct indexes of firm-level demand, cost, and export market profitability. The empirical results indicate substantia...

In this paper we use micro data on both trade and production for a sample of large Chinese manufacturing firms in the footwear industry from 2002-2006 to estimate an empirical model of export demand, pricing, and market participation by destination market. We use the model to construct indexes of firm-level demand, cost, and export market profitability. The empirical results indicate substantia...

exchange rate volatility is one of the effective and ambiguous factors in agricultural product export. considering the importance of agricultural trade to avoid single-product economy, the main aim of this study was to investigate the impact of exchange rate volatility on the raisin export of iran during the years1959-2011. for this purpose, exchange rate volatility index was estimated using mo...

Abstract: In this paper we investigate the effects of volatility of the fundamental determinants of trade on trade flows in México during the period 1991-2008. Our import and export functions are based on the well known imperfect substitute goods model of trade. We focus on the effects of real exchange rate as well as measures of relative prices and real income and their associated conditional ...