Showing papers in "Journal of International Economics in 2000"

TL;DR: This paper analyzed the adjustment dynamics of real exchange rates through impulse response analysis and found that the dynamic response pattern suggests that the shock response is initially amplified before dissipating and that such non-monotonic dynamics can contribute to more than one-third of the observed persistence of the real exchange rate.

TL;DR: In this article, the effects of the determinants of foreign direct investment (FDI) in 29 Chinese regions from 1985 to 1995 were investigated. And they found that large regional market, good infrastructure, and preferential policy had a positive effect but wage cost had a negative effect on FDI.

TL;DR: The authors examined inflation targeting in a small open economy with forward-looking aggregate supply and demand with microfoundations, and with stylized realistic lags in the different monetary-policy transmission channels.

TL;DR: This article examined the role of international bank lending, the potential for cross-market hedging, and bilateral and third-party trade in the propagation of crises, and found that both trade links and the largely ignored financial sector links influence the pattern of fundamentals-based contagion.

TL;DR: In this article, the authors argue that globalization may promote contagion by weakening incentives for gathering costly information and by strengthening incentives for imitating arbitrary market portfolios, and they suggest that these frictions can have significant implications for capital flows in emerging markets.

TL;DR: In this article, a simple game-theoretic rent-seeking model is proposed to address the relationship between concessional assistance, corruption, and other types of rentseeking activities, and the authors provide some preliminary empirical evidence in support of the hypothesis that windfalls and foreign aid are on average associated with more extensive corruption.

TL;DR: In this paper, the authors developed a general equilibrium exchange rate model consistent with the weak empirical evidence supporting the law of one price, where firms segment markets by country, and set prices in local currency of sale, referred to as pricing-to-market (PTM).

TL;DR: In this paper, a simple stochastic new open economy macroeconomic model based on sticky nominal wages is developed, which allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade.

TL;DR: In this article, the authors develop a monopolistic-competition model of international trade which includes positive trade costs and endogenous multinational firms, and demonstrate how the presence of trade costs changes the pattern of trade, creates incentives for factor mobility, and may lead to agglomeration of activity in a single country.

TL;DR: This paper found that the negative correlation between the expected currency depreciation and interest rate differential is confined to developed economies, and here only to states where the U.S. interest rate exceeds foreign interest rates.

TL;DR: This article found that oil accounts for much of the variation in the terms of trade over the last twenty five years and its quantitative role varies significantly over time, and since their dynamic general equilibrium model predicts that the economy responds differently to oil supply shocks than to other shocks, changes in their relative importance helps to explain the unstable correlations in the data.

TL;DR: In this paper, the authors argue that the critique that recent changes in the distribution of income primarily reflect technology rather than trade may be the majority opinion, but has been harshly criticized by some trade economists.

TL;DR: The authors showed that unit root and cointegration tests with a nominal size of 5% have true sizes that range from 0.90 to 0.99 in 100-year long data series, even though there is a permanent component that accounts for 42% of the real exchange rate.

TL;DR: In this paper, the transfer of production stages within US-headquartered multinational enterprises from US parents to foreign affiliates has contributed to within-industry shifts in US relative labor demand toward the more-skilled.

TL;DR: In this paper, the authors investigate the theoretical properties of a class of escape clause models of currency crises as well as their applicability to empirical work and propose an econometric technique, based on the Markov-switching regimes framework, by which these models can be brought to the data.

TL;DR: In this article, tax competition between national governments to influence the location of manufacturing activity is examined, and it is shown that either type of integration may result in a decrease in the intensity of tax competition, and thus higher equilibrium taxes.

TL;DR: A survey of practitioners in the interbank foreign exchange markets in Hong Kong, Tokyo, and Singapore was conducted by as mentioned in this paper, who found that liquidity and market uncertainty are two important reasons for deviating from the conventional interbank bid-ask spread.

TL;DR: This article applied pooled time series estimation on a forward-looking monetary model, resulting in parameter estimates which are in compliance with the underlying theory based on a panel version of the Engle and Granger [Engle, RF, Granger, CWJ, 1987 Co-integration and error correction: representation, estimation and testing, Econometrica 55, 251,276] two-step procedure.

TL;DR: The authors showed that it is more likely, rather than less likely, to find parity reversion for developing countries than industrial countries, and that some persistence variations may partly reflect country differences in structural characteristics such as inflation experience and government spending, a considerable portion of those variations seems unaccounted for.

TL;DR: This paper examined the interaction between preferential trade agreements (PTAs) and multilateral tariff reduction in a model of imperfect competition and found that tariff reduction enhances the incentives to form a PTA and increases the likelihood that it is self-enforcing.

TL;DR: The authors revisited the international transmission of exchange rate shocks in a multicountry economy, providing a choice-theoretic framework for the policy analysis of competitive devaluations, as opposed to the traditional view that a devaluation by one country does not necessarily have an adverse beggar-thy-neighbor effect on its trading partners, because they can benefit from an improvement in their terms of trade.

TL;DR: This article developed a model in which the maturity of external debt of banks, their level of international reserves, and the term structure of interest rates are jointly determined, in which banks take this possibility into account when choosing the structure of their assets and liabilities.

TL;DR: In this paper, the authors introduce factor (labor) markets into the intertemporal monetary model of Obstfeld and Rogoff and combine this richer market structure with a new utility independent representation of nontradeables.

TL;DR: This paper argued that trade barriers would not have much effect on earnings and that it is technology, not trade, that is the driving force for rising income inequality in the US, and they used a log-linear model for the US economy.

TL;DR: This paper examined the reasons for the differences in gains between the two approaches and found that the differences are largely due to the much higher variability of stock returns and its implied intertemporal substitution in marginal utility.

TL;DR: The authors analyzes Spain's financial liberalization using a dynamic general equilibrium model with a traded and nontraded good, where a capital poor country opens itself to its capital rich neighbors.

TL;DR: The authors estimate two versions of Romer's model of endogenous technological change that allow for population growth and human capital accumulation and show that trade openness increases the effectiveness with which human capital generates new knowledge, and improves the model's predictive performance.

TL;DR: The authors show that monetary union produces higher expected inflation, but a lower variance of inflation, while non-cooperative policy leads to more reform of factors that affect the inflation bias, which depends on the size of monetary policy spillovers and the degree of correlation of supply shocks.

TL;DR: In this paper, the impact of currency target zones on short-term interest rates was examined in the European Monetary System using a regime-switching model that allows fbr a differently parameterized mean-reverting square root process in each regime.

TL;DR: In this paper, the authors introduce scale economies and imperfect competition into the R&D and financial intermediation sectors of a Romer-Grossman-Helpman endogenous growth model.