Showing papers in "Journal of International Economics in 1986"

TL;DR: In this article, a two-country model is developed in which each country produces one good with increasing returns, the goods being perfect or imperfect substitutes, and they argue that these predictions of their model are closely consistent with extensive Canadian data on entry, exit and firms' responses to trade liberalization.

TL;DR: This article showed that the welfare-ranking of various policies can be reversed once the endogeneity of the distortion or non-economic objective is allowed for, and that the level of noneconomic objectives that have to be fulfilled itself depends on the policy tools considered to fulfill them with.

TL;DR: In this paper, the authors examined the possibility of designing a free-trade equilibrium that is Pareto superior to a given autarkic one, using redistributive tools other than lump-sum transfers.

TL;DR: In this article, a risk-averse firm's decisions on the level of trade, when the exchange rate and the commodity price are uncertain, and the extent of forward exchange and commodity futures commitments are examined.

TL;DR: In this article, the authors study export promotion policies in situations where several oligopolistic industries compete for the services of a sector-specific factor of production, and they find that these effects generally weaken the case for profit-shifting subsidies.

TL;DR: In this paper, the authors developed a method for assessing whether or not imports have been the most significant cause of injury to a U.S. industry, which is required under the "escape clause" provisions (Section 201) of the Trade Act of 1974.

TL;DR: The authors analyzes whether factor flows and commodity trade are substitutes or complements, i.e., whether increasing the level of one impacts adversely or favorably on the volume of the other.

TL;DR: In this paper, rational expectations models of speculative attacks on fixed exchange rate systems can be extended to take into account the possibility that the central bank could be forced to either devalue or revalue.

TL;DR: In this article, the authors measured the impact of product and country substitution on the price of U.S. footwear imports in the period surrounding the 1977-1981 footwear OMA with Korea and Taiwan.

TL;DR: In this paper, the authors present a model of a free-trade zone which incorporates the fact that such zones are often established by government subsidies designed to promote non-traditional exports.

TL;DR: In this article, the authors construct an open economy disequilibrium model to assess the welfare effects of aid in different macroeconomic regimes, and show that aid has different effects in different unemployment regimes because it increases the social costs of wage-price rigidities in the classical regime but decreases them in the Keynesian regime.

TL;DR: In this article, the nominal rates of agricultural protection in ten industrial countries from 1955 to 1980 were estimated with the same commodity coverage and data definitions, and a regression analysis was conducted to explain variations in the measured level of agriculture protection in terms of political as well as economic factors.

TL;DR: In this paper, the Ramaswami result was extended to reveal that optimality requires inflows of both factors, and the optimal policy rankings are reversed if foreign labor must be paid higher home wages.

TL;DR: In this article, a repeated game version of the basic Brander and Krugman (1983) model is analyzed, and it is shown that no trade, which is welfare-reducing when transportation costs are negligible, is a strong Nash equilibrium of the supergame.

TL;DR: The authors analyzes the steady state open-loop Nash equilibrium of a game in which a Northern monopolist devotes resources to new product development and a Southern planner diverts resources into reverse engineering to learn the technology to produce these.

TL;DR: In this article, the authors demonstrate a substantial role for trade policy in a competitive model, finding that: (a) an export subsidy may benefit the exporting country; (b) a "voluntary" export restraint may benefit a importing country; and (c) a countervailing duty may benefit an importing country even if it has no effect on the foreign price of that good.

TL;DR: The authors examined how the predictions of two popular models for the determination of some real economic variables must be modified when agents rationally perceive that a fixed rate regime will be transitory, i.e., it will not last indefinitely.

TL;DR: In this article, the effect of currency devaluation under capital-account restrictions is examined and it is shown that even large currency devaluations must improve the balance of payments in an intertemporal model.

TL;DR: In this article, the relation between goods trade and international factor mobility is analyzed in general terms. And the basic theorems of international trade, suitably interpreted, are shown to hold in their strong versions if the number of international markets for goods and factors is at least as large as the number number of factors.

TL;DR: The authors showed that free trade is Pareto-superior to autarky if and only if the compensation of losers is not effected by lump-sum transfers and that there are situations in which free-trade is not better than auto-carrier if compensation is not lump sum.

TL;DR: In this paper, a two-country, two-factor, four-good trade model with a double factor intensity reversal (FIR) is presented, and the model becomes well-behaved if preferences and technology are both Cobb-Douglas.

TL;DR: In this paper, the authors present a model in which two organized groups spend real resources to influence a country's tariff policy, and the size of a group is measured by its share of national income.

TL;DR: The authors developed an intertemporal disequilibrium model of a monetary economy to explain the effects of fiscal policy on the current account, emphasizing the role of aggregate demand-determined output fluctuations and flexible exchange rates within a microtheoretic optimizing framework.

TL;DR: A simple two-country, two-good model in which economies of scale form the basis of international trade is presented in this paper, where it is shown that the larger country exports the good characterized by increasing returns and imports the good subject to constant returns.

TL;DR: In this article, the authors extend Helpman's analysis to a world of freely traded intermediate goods, and show that direct factor content calculations are the theoretically appropriate measure for use in evaluating these empirical implications of the Heckscher-Ohlin model.

TL;DR: This paper examined a simple model in which exogenous political risk creates uncertainty about tariffs and found that the relationship between consumption and tariffs differs from that implied by models without asset markets or political risk.

TL;DR: In this paper, a three-country general equilibrium model of international trade in an arbitrary number of goods is constructed and the welfare effects of the formation of a preferential trading club (e.g. customs union, free trade area) are analyzed.

TL;DR: In this paper, the scope and properties of the Glejser-index are discussed and compared with those of other related measures, and two main areas of analysis emerge: namely the study of matching trade flows and the similarity of trade patterns.

TL;DR: The authors analyzes the short and long-run effects on domestic price and output of partially liberalizing quota restrictions in a general model of oligopolistic interactions and shows that perverse outcomes are possible in a number of cases, including that of rational conjectures.