This note presents a simple setup of credit liberalization. We find that the effect is not uniform but depends on level GDP. In other words, model predicts richer countries benefit more than poor from opening up their capital account. finding has important policy implications, as it suggests developing economies should be cautious when comes to liberalization

We construct a model of trade with heterogeneous retailers to examine the effects of trade liberalization on retail market structure, imports and social welfare. We are especially interested in studying the degree of pass-through of import into retail prices and the effects of retail market regulation. The paper shows that the degree of pass-through may be large when market structure effects ar...

This paper examines time series evidence to establish a link between trade, economic growth and income inequality in Bangladesh. The empirical results from a Vector Autoregression (VAR) model suggest that there is some evidence of trade liberalization accelerating growth in Bangladesh. Trade openness promotes investment. We find little evidence of trade affecting income distribution or of incom...

Agriculture is the focus of much contention in free trade negotiations. The Japanese government is against liberalizing the rice trade on the grounds that it would threaten “national food security” in the events of such shocks as crop failure, war, and embargo. Trade liberalization is expected to make Japan more dependent upon food imports and to make the Japanese economy more susceptible to th...

This paper uses the methodology developed in Kehoe and Ruhl (2013) to measure the change in the extensive, or new goods, margin of trade between Japan and China after China’s entry into the World Trade Organization in 2001. The new goods account for 15.9% of Japanese exports to China and 22% of Chinese exports to Japan after trade liberalization. For the case of Chinese exports to Japan, a time...

The main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which consists of di¤erentiated products. A product can be used only in combination with other products based on the same industrial standard. ...

In this note, we examine how trade liberalization affects the profits of firms in the presence of network effects. We will show that, contrary to conclusions in the previous literature, trade liberalization between identical countries increases firms’ profits despite intensified competition. (JEL Classification: D43, F12, L13) ∗e-mail: [email protected] †We would like to thank David And...

A Pragmatic Approach to Capital Account Liberalization Cross-country regressions suggest little connection from foreign capital inflows to more rapid economic growth for developing countries and emerging markets. This suggests that the lack of domestic savings is not the primary constraint on growth in these economies, as implicitly assumed in the benchmark neoclassical framework. We explore em...

This paper examines how political ideology influenced economic freedom in the Canadian provinces. We analyze the dataset of economic freedom indicators compiled by the Fraser Institute in 10 Canadian provinces over the 1981-2005 period and introduce two different indices of political ideology: government and parliament ideology. The results suggest that government ideology influenced labor mark...

this paper examines the effects of agricultural land productivity improvement on the economy of iran assuming that the domestic and international trade liberalizations will open up the opportunities to expand market access. a 25-sector computable general equi-librium model was developed to simulate the effects of this policy. the simulation results indicate that enhancing agricultural land prod...