Showing papers in "Journal of International Economics in 2008"

TL;DR: In this paper, multinational firms operating in emerging markets transfer technology to local suppliers to increase their productivity and to lower input prices to avoid hold-up by any single supplier, the foreign firm must make the technology widely available This technology diffusion induces entry and more competition which lowers prices in the supply market.

TL;DR: In this article, the effects of regional agreements on trade flows controlling for country pair, importer-year, and exporter year fixed effects were estimated for individual countries' trade flows in year five of the agreements and showed that regional agreements have significant anticipatory effects on trade flow and continue to affect trade for up to 11 years after they begin.

TL;DR: In this paper, the authors empirically studied the effects of government budget deficit shocks on the current account and the real exchange rate, during the flexible exchange rate regime period, and identified "exogenous" fiscal policy shocks after controlling for business cycle effects on fiscal balances.

TL;DR: In this paper, the authors examine the determinants of why a pair of countries enter a bilateral preferential trade agreement (PTA) and whether this impact is larger when the members of pre-existing PTAs are on average geographically close to the pairs of countries.

TL;DR: In this article, a tractable model for the analysis of optimal monetary and fiscal policy in a currency union is presented, where monetary authority sets a common interest rate for the union, whereas fiscal policy is implemented at the country level, through the choice of government spending.

TL;DR: In this paper, the authors exploit shocks to the availability of external finance and examine the impact of equity market liberalization on the export behavior of 91 countries in the 1980-1997 period, showing that liberalization increase exports disproportionately more in financially vulnerable sectors that require more outside finance or employ fewer collateralizable assets.

TL;DR: The authors proposed a model of FDI in which headquarters bid to control overseas assets and derived an equation for bilateral FDI stocks that resembles the recently developed fixed effects approach to modelling bilateral trade flows.

TL;DR: This paper explored the major driving forces for currency invoicing in international trade with a simple model and a novel dataset covering 24 countries and found that exporters minimize the movements of their prices relative to their competitors' with incentives to hedge macroeconomic volatility and transaction costs.

TL;DR: In this article, the role of EU Cohesion Policy in attracting foreign investors from both within and outside Europe has been investigated using data on 5509 foreign subsidiaries established in 50 regions of 8 EU countries over the period 1991-1999.

TL;DR: In this paper, the authors provide evidence on the monopolistic competition model with heterogeneous firms and endogenous productivity, and show that this model has a well-defined GDP function where relative export variety enters positively, and estimate this function over 48 countries from 1980 to 2000.

TL;DR: In this article, the authors build a model where individual firms determine the amount of resources to allocate to political contributions and show that, in the presence of a fixed cost of channeling political contributions, it is efficient for a lobby to be formed by the largest firms in a sector.

TL;DR: In this paper, a dynamic stochastic small open economy model of sovereign debt and default is proposed to rationalize the claim that high turnover rates/length of tenure of policymakers and the degree of conflict within a country affects sovereign spreads, debt, and default rates.

TL;DR: This article revisited the effects of monetary policy on exchange rates by applying Uhlig's [Uhlig, H., 2005a] identification procedure that involves sign restrictions on the impulse responses of selected variables.

TL;DR: In this paper, the authors investigate deviations from the covered interest rate parity (CIP) condition using a unique data set for three major capital and foreign exchange markets that covers a period of more than seven months at tick frequency.

TL;DR: In this article, the authors provide evidence on the impact of export promotion on export performance using a unique firm-level dataset for Peru over the period 2001-2005, and find that export promotion actions are associated with increased exports, primarily along the extensive margin, both in terms of markets and products.

TL;DR: This article provided an empirical assessment of the effect of national and international knowledge spillovers on innovation at a finely defined sectoral level for six major industrialised countries over the period 1981-1995.

TL;DR: In this paper, the authors provide empirical evidence from a sample of 70 countries observed between 1975 and 1999 to show that economic integration has a positive direct effect on productivity, while it does not directly aect capital accumulation.

TL;DR: In this article, the authors employ a Bayesian dynamic latent factor model to estimate common and country-specific components in the main macroeconomic aggregates (output, consumption, and investment) of the G-7 countries.

TL;DR: In this paper, the authors focus on two key determinants of cross-border investment in that countries become financially integrated through some types of investment rather than others, and find that in particular FDI and to some extent also loans, are substantially more sensitive to information frictions than investment in portfolio equity and debt securities.

TL;DR: This paper studied the link between a matched worker-employee longitudinal dataset and export performance and wages of its workers and found that workers with high skill intensities pay higher wages than those with low skills.

TL;DR: In this article, the authors explore the relationship between openness and productivity and show that in export-oriented markets openness can increase aggregate productivity while generating within-firm productivity losses for the weakest firms.

TL;DR: In this article, the authors analyze a sequential game between two symmetric countries when firms can invest in a multinational structure that confers tax savings, and show that small countries are likely to grant more tax preferences than larger ones, along with having lower effective tax rates.

TL;DR: In this article, it was shown that neither sanctions nor reputation considerations are necessary to enforce repayment, and that positive borrowing can be sustained both in pooling and separating equilibria.

TL;DR: In this paper, the authors explore the impact of trade on growth when firms are heterogeneous and find that greater openness produces anti-and pro-growth effects, with the balance of the two effects ambiguous with the sign depending upon the exact nature of the innovation technology and its connection to international trade in goods and ideas.

TL;DR: In this paper, the authors show that fixed exchange rates exhibit considerably greater bilateral exchange rate stability than flexible rates, both today and in the future, while the "fear of floating" view suggests little actual difference in fixed and floating rates with respect to exchange rate volatility.

TL;DR: In this article, the authors report survey results on the currency choice of a random sample of Swedish exporters and find that for an overwhelming share of exports, the price, invoice and settlement currency is the same for both intra-and between-firm trade.

TL;DR: In this paper, the authors examined the extent to which production location decisions of Taiwanese multinationals reflect underlying patterns of firm productivity and showed that more productive firms engage in outward FDI, with the most productive ones investing in both China and the U.S.

TL;DR: The authors explored the connection between interest rates in major industrial countries and annual real output growth in other countries and found that high foreign interest rates have a contractionary effect on annual real GDP growth in the domestic economy, but that this effect is centered on countries with fixed exchange rates.

TL;DR: In this paper, the effect of anti-dumping protection on the productivity of EU domestic firms in import-competing industries is investigated. And they find that firms with relatively low initial productivity have productivity gains during AD protection, while firms with high initial productivity experience productivity losses.

TL;DR: In this paper, an empirical model was proposed to estimate the impact of endogenous new regional trade agreement membership on trade structure. But, the model was based on a difference-in-difference analysis based on matching techniques and the associated trade volume effects were similar to the ones found in previous research on the effects of endogenous RTAs.