Coe and Helpman (1995) estimated a relationship between TFP and levels of domestic and foreign R&D capital, but couldn't provide compelling evidence of the panel eointegration needed to support their estimation strategy. This paper uses Pedroni's (1997, 1998) tests for panel cointegration in both the Coe-Helpman setup and in a framework with more cross-section heterogeneity. Criticisms of the C...

Based on Helpman et al. (2004) we propose a simple two-country (Home and Foreign) model with heterogeneous firms to capture the role of FDI via utilizing time zone differences. Two countries are located in different time zones and there is no overlap in daily working hours. It will be shown that productivities of the firms undertaking FDI are higher than the productivities of non-FDI f i r m s ...

In recent years, investigating synchronization of business cycles among countries, after increasing integration of global economies, has been attracted more attention of policy makers and researchers. Perhaps an unknown origin of such similarities, as an open question, is the main reason of these interests. So, with regard to the mentioned question, the aim of this paper is to investigate some ...

Do scale economies contribute to our understanding of international trade? Do international trade flows encode information about the extent of scale economies? To answer these questions we examine the large class of general equilibrium theories that imply Helpman-Krugman variants of the Vanek factor content prediction. Using an ambitious database on output, trade flows, and factor endowments, w...

The integrated equilibrium is a paradigm that has played a central role in the field of international trade. The concept originated with Paul A. Samuelson (1949), was further developed by Avinash K. Dixit and Victor F. Norman (1980), and placed at the heart of international analysis by Elhanan Helpman and Paul R. Krugman (1985). The central idea is that a world with imperfect mobility of produc...

Purpose – Recent developments in the literature on international trade and foreign direct investment (FDI) emphasise the role of firm characteristics in shaping firm participation in exports and FDI. The seminal work of Melitz and Helpman-Melitz-Yeaple (HMY) places heterogeneity in firm productivity at the heart of exporting and FDI. While the HMY hypothesis finds support for firms in the indus...