For what kind of intermediate input/service do firms often go outsourcing? This paper develops a model of two-stage production in which economies of scope are central to the production of both the intermediate and final good. The model is able to explain the patterns of outsourcing from the degree of product differentiation, economies of scope, and economies of scale in production of the interm...

The “Resource Curse” is a stylized fact that has been observed consistently in a number of development studies: countries that are relatively well-endowed with natural resources tend to grow more slowly than resource-poor economies. This paper documents evidence that the Resource Curse extends to the individual states of the U.S. Using a variety of specifications, regression of state GSP growth...

Smooth economies with private ownership of production of the kind previously considered in the literature are shown to be formally identical to exchange economies with demand functions that are properly adjusted for production. Smooth production economies therefore satisfy the same properties as smooth exchange economies. Some of these properties had resisted extension to production because of ...

The Canadian and US economies, by many measures and along many dimensions, are highly integrated and, possibly as a result of this integration, have highly correlated business cycles. This paper examines various aspects of the co-movement between the two economies. One objective is to document the relationship between the two economies at an aggregate level and to examine how the relationship m...

This article investigates the informational requirements of resource allocation processes in pure exchange economies with consumption externalities. It is shown that the distributive Lindahl mechanism has a minimal informational size of the message space, and thus it is informationally the most efficient allocation process that is informationally decentralized and realizes Pareto-efficient allo...

In spite of the rapid growth many developing and emerging economies are experiencing, with much of this growth supported by information technology (IT), published research dealing with IT in developing economies is still very limited. The objective of this paper is to direct attention to this apparent gap and provide an overview of the issues related to information systems (IS) and IT specifica...

Most small island economies or ‘microstates’ have distinctly different characteristics from larger developing economies. They are more open and vulnerable to external and environmental shocks, resulting in high output volatility. Most of them also suffer from locational disadvantages. Although a few small island economies have succeeded in generating sustained rapid growth and reducing poverty,...

This paper derives a convergence equation for a world integrated by trade. Factor price equalization induced by trade reduces saving in capital-scarce economies, while it exercises the opposite effect in capital-abundant economies. Thus income convergence among parametrically identical economies is slower in a world integrated by trade than in a world of autarkic economies. Under standard param...

Rather than adding up all cost items of ship operation in the traditional vessel-based approach, this paper develops a theoretical model to evaluate and decompose the total factor productivity (TFP) growth of the container shipping industry in Taiwan. The results show that scale economies and ship size economies play the dominant roles in improving TFP growth. Since 2006, the dominance of TFP g...

This article studies the absolute and conditional convergence of real GDP per capita among 164 world economies over the sample period of 1970-2006. The data-driven model specification tests justify the use of nonparametric and semiparametric models. The estimation results show that control variables play a negative/positive channel effect in the growth convergence for poor/developed economies. ...