Journal•ISSN: 0022-1996
Journal of International Economics
Elsevier BV
About: Journal of International Economics is an academic journal published by Elsevier BV. The journal publishes majorly in the area(s): Exchange rate & Free trade. It has an ISSN identifier of 0022-1996. Over the lifetime, 3124 publications have been published receiving 295378 citations.
Topics: Exchange rate, Free trade, Trade barrier, Commercial policy, Tariff
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TL;DR: In this article, the effect of FDI on economic growth in a cross-country regression framework was investigated. And they found that FDI contributes to economic growth only when a sufficient absorptive capability of the advanced technologies is available in the host economy.
Abstract: We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. Thus, FDI contributes to economic growth only when a sufficient absorptive capability of the advanced technologies is available in the host economy.
4,268 citations
TL;DR: The authors developed a simple, general equilibrium model of non-comparative advantage trade and showed that trade and gains from trade will occur, even between countries with identical tastes, technology, and factor endowments.
Abstract: This paper develops a simple, general equilibrium model of noncomparative advantage trade. Trade is driven by economies of scale, which are internal to firms. Because of the scale economies, markets are imperfectly competitive. Nonetheless, one can show that trade, and gains from trade, will occur, even between countries with identical tastes, technology, and factor endowments.
3,756 citations
TL;DR: The authors compared the performance of various structural and time series exchange rate models, and found that a random walk model performs as well as any estimated model at one to twelve month horizons for the dollar/pound, dollar/mark, dollar /yen and trade-weighted dollar exchange rates.
Abstract: This study compares the out-of-sample forecasting accuracy of various structural and time series exchange rate models. We find that a random walk model performs as well as any estimated model at one to twelve month horizons for the dollar/pound, dollar/mark, dollar/yen and trade-weighted dollar exchange rates. The candidate structural models include the flexible-price (Frenkel-Bilson) and sticky-price (Dornbusch-Frankel) monetary models, and a sticky-price model which incorporates the current account (Hooper-Morton). The structural models perform poorly despite the fact that we base their forecasts on actual realized values of future explanatory variables.
3,621 citations
TL;DR: In this article, a global commodity chains perspective is used to analyze the social and organizational dimensions of international trade networks, with an emphasis on the apparel industry, and the mechanisms by which organizational learning occurs in trade networks.
Abstract: This article uses a global commodity chains perspective to analyze the social and organizational dimensions of international trade networks. In linking international trade and industrial upgrading, this article specifies: the mechanisms by which organizational learning occurs in trade networks; typical trajectories from assembly to OEM and OBM export roles; and the organizational conditions that facilitate industrial upgrading moves such as the shift from assembly to full-package networks. The empirical focus is the apparel industry, with an emphasis on Asia. © 1999 Elsevier Science B.V. All rights reserved. Globalization has altered the competitive dynamics of nations, firms, and industries. This is most clearly seen in changing patterns of international trade, where the explosive growth of imports in developed countries indicates that the center of gravity for the production and export of many manufactures has moved to an ever expanding array of newly industrializing economies (NIEs) in the Third World. This shift is central to the 'East Asian miracle,' which refers to the handful of high-performing Asian economies that have attained lofty per capita growth rates, relatively low income inequality, high educational attainment, record levels of domestic saving and investment, and booming exports from the 1960s to the mid-1990s (World Bank, 1993). Regardless of whether the growth is due to
2,864 citations
TL;DR: This paper found that vertical specialization accounts for 21% of these countries' exports, and grew almost 30% between 1970 and 1990, and also found that growth in vertical specialization accounted for 30% of the growth in these countries’ exports.
Abstract: Dramatic changes are occurring in the nature of international trade. Production processes increasingly involve a sequential, vertical trading chain stretching across many countries, with each country specializing in particular stages of a good’s production sequence. We document a key aspect of these vertical linkages — the use of imported inputs in producing goods that are exported — which we call vertical specialization. Using input–output tables from 10 OECD and four emerging market countries we calculate that vertical specialization accounts for 21% of these countries’ exports, and grew almost 30% between 1970 and 1990. We also find that growth in vertical specialization accounts for 30% of the growth in these countries’ exports.
2,775 citations