This paper investigates how the European integration process of central eastern European countries, which has been taking place since the 1990’s, affects their GDP growth. Based on an augmented Solow model, I estimate a convergence equation for a panel of ten countries over 16 years (19952010). In the regression, trade with the other European Union member states as a share of total trade serves...

The classical Heckscher-Ohlin-Mundell paradigm states that trade and capital mobility are substitutes, in the sense that trade integration reduces the incentives for capital to ‡ow to capital-scarce countries. In this paper we show that in a world with heterogeneous …nancial development, the classic conclusion does not hold. In particular, in less …nancially developed economies (South), trade a...

One of the most striking development in the world trading system since the mid 1990s is a surge in Regional Trade Agreements (RTAs). From about 50 till 1990, the number of RTAs notified to the World Trade Organization (WTO) has crossed 250 in 2003 and estimates indicate that over 300 RTAs will be in effect by 2007. Initially WTO encouraged the growth of RTAs because it believed that regional in...

The issue of the interaction between trade and labor mobility has become a major topic in the context of economic integration and trade liberalization. The main purpose of this study is to investigate the issue of international labor mobility from the standpoint of new developments in trade theory, by asking the following question: does trade liberalization result in the substitution or complem...

The breathtaking pace of global economic integration owes in large part to the globalization of economic thought embodied in general free market principles. Cautionary tales of the perils of free trade are often just that, cautionary. Most such authors are not against free trade per se; instead they attempt to draw attention to the need for the creation of institutions that can support such trade.

In a supply-constrained region like Asia, promoting exports has always been a challenge particularly at a time when Asia’s trade has been severely affected by lack of external demand. This study argues that price barriers have now taken a new shape which may likely to generate differential impacts on trade flows. The size and shape of price barriers would be higher if NTBs, applied by the count...

We develop a monopolistically competitive model of trade with firm heterogeneity in terms of productivity differences and endogenous differences in the 'toughness' of competition across markets in terms of the number and average productivity of competing firms. We analyze how these features vary across markets of different size that are not perfectly integrated through trade; we then study the ...

Negotiations among nations on policies to promote international economic integration have widened in recent years to cover new issues; for example, foreign direct investment rules, policies to promote competition, the international movement of labor, the environment and monetary union. In these negotiations, a consensus among the parties negotiating is usually lacking and many of these negotiat...