Showing papers in "Journal of International Economics in 2010"

TL;DR: This article examined the effect of independence on post-colonization trade and found that the severing of formal colonial relations can lead to an immediate reduction in trade as preferential access is eliminated as well as a gradual reduction corresponding to the deterioration of trading networks.

TL;DR: In this paper, the authors developed a small open economy model to study sovereign default and debt renegotiation within a dynamic borrowing framework and found that both equilibrium debt recovery rates and sovereign bond prices decrease with the level of debt.

TL;DR: This paper examined the linkages between exchange rate movements, order flow and expectations of macroeconomic variables, and found that order flow is intimately related to a broad set of current and expected macroeconomic fundamentals.

TL;DR: The authors developed the implications of portfolio choice for both gross and net international capital flows in the context of a simple two-country dynamic stochastic general equilibrium (DSGE) model.

TL;DR: In this paper, the authors used Portuguese firm-level data on exports by product and destination market, and found that f.o.b. unit values increase systematically with distance, and tend to be higher in shipments to richer nations.

TL;DR: This paper developed an approach for quantifying the importance of different sources of comparative advantage, by extending the Eaton and Kortum (2002) model to predict industry trade flows, with countries specializing in industries whose production needs they can best meet with their factor endowments and institutional strengths.

TL;DR: This paper showed that an estimated, structural, small open-economy model of the Canadian economy cannot account for the substantial influence of foreign-sourced disturbances identified in numerous reduced-form studies.

TL;DR: In this article, the authors evaluate the impact of strengthening patent rights (PRs) in developing countries on developed countries' exports over the 1962-2000 period and find that the increase in PRs made in response to the TRIPs agreement added about $35 billion (2000 US dollars) to the value of developed countries" patent-sensitive exports into 18 developing countries.

TL;DR: This paper examined how multinational firms with heterogeneous total factor productivity (TFP) self-select into different host countries and found that more productive French firms are more likely than their less efficient competitors to invest in relatively tough host countries.

TL;DR: In this paper, the impact of international technology differences on the factor content of trade has been studied and it is shown that missing trade is associated entirely with "home bias" in the consumption of agricultural goods, government services and construction.

TL;DR: In this paper, the authors investigated the underlying channels of the euro's effect on financial integration using data on bilateral banking linkages among twenty industrial countries in the past thirty years and constructed a dataset that records the timing of legislative-regulatory harmonization policies in financial services across the European Union.

TL;DR: In this article, the authors investigated how multinational firms choose the capital structure of their foreign affiliates in response to political risk, focusing on two choice variables, the leverage and the ownership structure of the foreign affiliate.

TL;DR: This paper study the impact of changing tariffs on the range of goods countries export to the United States and show that tariffs tend to have a statistically significant but small impact: at best 5% of the increasing extensive margin for 1989-1999 and 12% for 1996-2006 is explained by tariff reductions.

TL;DR: The authors found that among foreign affiliates exporters are less productive than non-exporters and proposed a theoretical explanation by incorporating into the standard firm heterogeneity model the possibility that firms could have different stages of production in different countries.

TL;DR: This article explored the joint determination of home bias and attention allocation by using a new internet search query dataset to measure how much information investors decide to process, and they found empirical evidence of a two-way causality between home biases and attention, and their estimates suggest that if all countries were to receive the same level of attention as the U.S., then the average home bias by investors would fall from 85.2% to 57.3%.

TL;DR: In this article, a two-sector, general-equilibrium model with labor-market search frictions is presented, and it is shown that the wage increases and sectoral unemployment decreases upon offshoring in the presence of perfect inter-sectoral labor mobility.

TL;DR: In this paper, tax competition between a large number of identical countries may lead to either a symmetric equilibrium with no profit shifting or an asymmetric equilibrium where firms shift profits from high-tax to low-tax countries.

TL;DR: In this article, the authors develop an equilibrium theory of trade agreements in which both the degree and the nature (bilateral or multilateral) of trade liberalization are endogenously determined.

TL;DR: In this paper, the authors show that the decision to enter into an FTA is also crucially dependent on the participating countries' existing FTA relationships with third countries, accounting for the interdependence of FTAs helps to explain a significant fraction of FTA formations that would not otherwise be predicted by countries' economic characteristics.

TL;DR: In this paper, the authors employ a model of endogenous foreign subsidiary ownership to derive a set of empirically testable hypotheses about the differential taxation of foreign and domestically-owned subsidiaries.

TL;DR: In this paper, the authors set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms and identified a range of trade costs where economic integration raises the welfare of the small country, but lowers welfare in the large country.

TL;DR: In this article, the authors provide a model in which airplanes bring producers and consumers together in time, and the model predicts that the likelihood and extent to which firms employ air shipments is increasing in the volatility of demand they face, decreasing in the air premium they must pay, and increasing in contemporaneous realization of demand.

TL;DR: In this paper, the authors show that high-cost firms seek protection against competition from efficient firms by locating in the smaller country, but when the spatial separation of markets ceases to be a sufficient protection against foreign competition, high cost firms choose to set up in the larger market and the relationship between economic integration and international productivity gap first increases and then decreases with market integration.

TL;DR: In this article, a unified and tractable model of comparative advantage due to differences in both factor abundance and relative productivity differences across industries is derived and conditions under which ignoring one force for comparative advantage biases empirical tests of the other.

TL;DR: In this paper, the authors used new developments in the analysis of portfolio choice in general equilibrium to investigate valuation effects in a two-country model and found that the valuation effects correspond to those observed in the data, but there is a key distinction between "unanticipated" and "anticipated" valuation effects.

TL;DR: In this paper, the authors developed a Ricardian model with a continuum of goods which vary by weight and hence transport cost and found that the U.S. should import heavier goods from nearby countries and lighter goods from faraway counties.

TL;DR: In this paper, the authors examined empirically whether pairs of countries with more bilateral production fragmentation arrangements tend to have more correlated business cycles, and they found that trade in fragmentation has a positive effect while the standard bilateral trade intensity indicator has a negative impact on business cycle comovement.

TL;DR: This paper studied the international transmission of aggregate TFP shocks in an environment with noncompetitive financial intermediation and showed that countercyclical margins on loans play a key role in bringing the predictions of the theory closer to the observed cross-country cyclical co-movements of consumption, employment, investment and output.

TL;DR: This paper revisited the dramatic failure of monetary models in explaining exchange rate movements and found strong evidence for cointegration between nominal exchange rates and monetary fundamentals, and also found fundamentals-based models very successful in beating a random walk in out-of-sample prediction.

TL;DR: This article used a representative panel of manufacturing firms to estimate the response of job and hours worked to currency swings, showing that it depends primarily on firms' exposure to foreign sales and their reliance on imported inputs.