Showing papers in "Journal of International Economics in 2006"

TL;DR: In this paper, the response of U.S., German and British stock, bond and foreign exchange markets to real-time macroeconomic news is characterized using a unique high-frequency futures dataset.

TL;DR: This article developed an empirical framework to estimate the empirical relevance of this prediction and identified the effect of quality operating on the demand side through the relationship between per capita income and aggregate demand for quality.

TL;DR: In this article, the authors introduce a framework for measuring international knowledge spillovers at the firm level, and use this framework to directly test the hypothesis that FDI is a channel of knowledge spillover for Japanese multinationals undertaking direct investments in the United States.

TL;DR: The authors examined the relationship between exchange rate movements and firm value and found that the direction of exposure depends on the specific exchange rate and varies over time, suggesting that firms dynamically adjust their behavior in response to exchange rate risk.

TL;DR: The authors examined the extent to which product differentiation affects duration of US import trade relationships and found that the hazard rate is at least 23% higher for homogeneous goods than for differentiated products.

TL;DR: In this article, the authors use micro-level data to analyze emerging markets' private sector access to international debt markets during sovereign debt crises and find that these crises are systematically accompanied by a decline in foreign credit to domestic private firms, both during debt renegotiations and for over two years after restructuring agreements are reached.

TL;DR: In this paper, the authors examine the integration strategies of multinational firms that face a rich array of choices of international organization, focusing on the role that industry characteristics such as the fixed costs of foreign subsidiaries, the cost of transporting intermediate and final goods, and the regional composition of the consumer market play in determining the optimal integration strategies.

TL;DR: This paper showed that finance serves to increase international correlations in both consumption and GDP fluctuations, which explains the persistent gap between the two in the data, a "quantity puzzle" that persists even after the effects of finance on trade and specialization are accounted for.

TL;DR: This paper showed that the quantitative predictions of an equilibrium asset-pricing model with financial frictions are consistent with key features of the Sudden Stop phenomenon, where foreign traders incur costs in trading assets with domestic agents, and a collateral constraint limits external debt to a fraction of the market value of domestic equity holdings.

TL;DR: The authors show that gravity holds in the case of digital goods consumed over the Internet that have no trading costs and that trade costs cannot fully account for the effects of distance on trade. But this effect only holds for taste-dependent digital products, such as music, games, and pornography.

TL;DR: In this paper, the authors show that bailouts that reduce ex post inefficiency will sometimes enhance the incentives for governments to take costly adjustment effort, and this model helps us understand a debate about the role of the IMF in catalyzing lending to developing countries.

TL;DR: This article showed that a large, significant effect of a fixed exchange rate on bilateral trade between a base country and a country that pegs to it can be found when using a new data-based classification of fixed exchange rates.

TL;DR: In this paper, the authors investigated the role of trade liberalization in explaining the relative earnings move-ments of skilled labor in Brazil and found that employment shifted from skilled to unskilled intensive sectors, and each sector increased its relative share of skilled workers.

TL;DR: In this article, the authors present a tax competition model with two policy instruments: the level of corporate taxation and the tightness of control of profit shifting by multinational firms (MNF).

TL;DR: In this article, a model of foreign direct investments (FDI) and foreign portfolio investments (FPI) was developed to explain several stylized facts regarding foreign equity flows, such as the larger ratio of FDI to FPI inflows in developing countries relative to developed countries, and the greater volatility of foreign equity net inflows relative to foreign portfolio investment net infows.

TL;DR: The authors used a two-country, flexible-price model with overlapping generations of infinitely lived households to study the role of net foreign asset dynamics in the propagation of productivity shocks, and found that the difference relative to a complete markets economy in which net foreign assets movements play no role in shock transmission is smaller.

TL;DR: The authors explored the relationship between exposure to trade (as measured by openness) and child labor in a cross-country setting, and found that countries that trade more have less child labor.

TL;DR: In this article, the authors developed a model of international oligopolistic competition under demand uncertainty and asymmetric information and showed that when domestic firms but not foreign firms are completely informed of local market demands, information sharing enhances the profitability of a merger between a domestic firm and a foreign firm.

TL;DR: In this paper, the authors quantified the effects of liberalization of air cargo markets on transport costs and found that Open Skies Agreements reduce air transport costs by 9% and increase the share of imports arriving by air.

TL;DR: In this article, the authors investigated why financial market crises often increase the interdependence between assets associated with different countries, and developed a method for detecting shift-contagion with three notable features.

TL;DR: The authors developed a two-country model of endogenous investment in process innovation by a manufacturer facing competition from parallel imports (PI) and found that the distortions associated with PI inhibit innovation, and that the difference between the manufacturer's expected profits under successful and failed innovation is U-shaped in the cost of engaging in PI.

TL;DR: In this paper, the authors provide a quantitative investigation of the East Asian crisis of 1997-1999 and show that the crisis was a regional phenomenon and the depth and severity of the crisis were exacerbated by a large decline in regional demand.

TL;DR: The authors analyzed the effects of global and national technological change on employment and relative wages in an integrated two-country world, where both countries are characterized by equilibrium unemployment due to fair wage constraints.

TL;DR: This article showed that a pegged exchange rate or dollarization, while sometimes prescribed as a solution to the credibility problem, is typically not appropriate for countries with poor institutions and cast doubt on the notion that a low inflationary framework can induce governments to improve public institutions.

TL;DR: In this paper, the authors examined the incentives the multinational and the host country have to engage in an international joint venture, and found that a joint venture is sometimes not in the interest of a host country, despite the prospect of spillovers.

TL;DR: The authors studied the relationship between relative price changes and the allocation of labor between households and the formal wage labor market in the context of Vietnam's liberalization of its rice trade in the 1990s.

TL;DR: In this article, the role of productivity-driven real exchange rate movements in the early transition period is investigated. But the authors focus on the early stages of the transition and do not consider the impact of the structural transformation process on productivity in the tradables sector per se.

TL;DR: In this paper, the authors introduce a model based on information acquisition to rationalize the increased volatility in relative prices, where balance sheet effects are captured by the interaction of a proxy for potential changes in the real exchange rate (linked to the degree of external leverage of the absorption of tradable goods).

TL;DR: In this paper, the authors consider the case for imposing uniform pricing on a monopolist in a setting where markets can be segmented according to differences in marginal costs and/or consumer demand.