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...

Modern methods of quantitative risk analysis, specifically value-at-risk and expected shortfall approach, provide comprehensive and coherent risk evaluation throughout entire distribution of outcomes and can take agricultural business from the realm of uncertainty to specific, quantified risks. Monte Carlo simulation with autocorrelation of standard deviation shows the best results in risk mode...

A currency area can be a self-validating optimal policy regime, even when monetary unification does not foster real economic integration and intra-industry trade. In our model firms choose the degree of exchange rate pass-through onto export prices accounting for expected monetary policies, and monetary authorities choose optimal policy rules taking firms’ pass-through as given. We show that th...

The article reveals the main problems of mechanism for customs regulation export petroleum products: cancellation duties at end «tax maneuver», dependence on gasoline and diesel fuel world oil price, government does not take into account ratio domestic prices when determining duty rate demand supply products in market to determine need apply measures export, as well lack a applying non–tariff m...

Indonesia is one of the countries that has largest nickel reserves in world. In addition to being used for export, currently government required domestic downstream nickel. addition, potential also plays a role increasing investment state revenues through consolidation. Through policy banning ore exports, long-term sustainability raw supply smelter needs maintained. However, there are issues co...

Abstract The import and export price indices of an economy are usually compiled by some Laspeyres type index. It is well known that such index formula prone to substitution bias. Therefore, also the terms trade (ratio index) likely be distorted. underlying bias accumulates over time. present article introduces a simple transparent retroactive correction approach addresses source produces meanin...

Purpose This study focuses on forecasting the price of most important export crops vegetables and fruits in Egypt from 2016 to 2030. Design/methodology/approach The applied generalized autoregressive conditional heteroskedasticity (GARCH) model integrated moving average (ARIMA) model. Findings results show that ARIMA (1,1,1), (2.1,2), (1,1,0), (1,1,2), (0,1,0) (1,1,1) are appropriate fitted mod...

This paper explores the role of product quality in explaining observed price, production cost and trade patterns. Schott (2004) shows that for narrowly defined product the average unit value of goods imported by the US is increasing in the revenue, skill abundance, and capital intensity of the exporting country. These patterns are difficult to reconcile with a theory in which productivity’s uni...