the private wage sector in cote d ivoire homogeneity or heterogeneity one dominant feature of economic development is change in the structure of the economy some sectors expand while others shrink in response to changes in output markets considerable adjustments must take place in factor markets as well development will therefore proceed more speedily when barriers in the factor markets are minimal whether or not barriers in the labor market exist macroeconomic discussions of labor markets usually assume uninhibited flows between sectors 13 similarly a large literature on earnings of wage workers has treated the wage sector as a homogeneous part of the labor market yet if the wage sector is heterogeneous model estimates have no empirical meaning and policy recommendations have no foundation

armington models and terms of trade effects some econometric evidence for north america elasticities of substitution among u s imports from mexico canada the rest of the world and competing domestic production are estimated for twenty two mining and manufacturing sectors based on quarterly data for 1980 88 these elasticities will provide a benchmark for computable general equilibrium models of north american trade liberalization the authors also find that estimated armington elasticities are low and therefore researchers may want to reconsider the device of using high values of armington elasticities in multicountry computable general equilibrium models to avoid large terms of trade losses associated with preferential trade liberalization

north south standards harmonization and international trade recent years have seen a surge in economic integration agreements eias and the development of non tariff measures ntms as a consequence a growing number of eias include provisions on ntms however little attention has been given in the literature to the effects of ntm liberalization in the context of eias in this paper we focus on provisions for technical regulations and analyze whether the north south harmonization of technical barriers affects international trade using a gravity equation it tests whether as a result of the deep integration associated with standards provisions included in the eia the southern partners trade expands with the north but at the expense of their trade with non bloc southern partners empirical results provide strong support for this conjecture moreover harmonization on the basis of regional standards negatively impacts the exports of developing countries to the north

market approval of phytosanitary active substances in europe an empirical duration analysis abstract the aim of this paper is to analyze empirically the main determinants of delays to market approval of active substances in europe an interesting feature of this regulation is that it is based on both a decentralized examination by the rapporteur country and a centralized examination by the european food safety authority efsa our econometric analysis is based on standard survival and competing risks models the data cover 393 active substances reviewed between 1993 and 2013 we show that the review process is affected by regulatory factors the characteristics of the active substances and the characteristics of agri chemical firms log logistic and log normal survival models are the preferred parametric specifications and the results suggest that the hazard function is non monotonic over time

closing the gap the employment and unemployment effects of minimum wage policy in puerto rico abstract this paper examines the dynamic effect of minimum wage policy on employment and unemployment using multivariate time series techniques the particular minimum wage policy being considered occurred in puerto rico in 1974 when it was decided to close the minimum wage gap between the island and the united states incrementally by 1980 multivariate transfer functions are specified with the intent of distinguishing between minimum wage policy effects and structural changes brought about by the post 1974 recessions the results suggest that minimum wage policy gave rise to more significant unemployment than disemployment effects the pattern of labor mobility supports that suggested by the development literature in which labor flows from uncovered to covered sectors however given the structure of welfare programs on the island it is likely that flows from the covered to the non market sector also took place

aggregation problems in estimates of armington elasticities and pass through effects this article examines the level of aggregation problem for which armington price elasticity of substitution and pass through effects are usually estimated on the basis of u s import data from 1995 to 2004 of wood products from brazil and mexico it is argued that the usual levels of aggregation used in the estimates for the elasticity of substitution are too high since they tend to aggregate perfectly elastic products together with products whose elasticities vary from zero to any negative number analogously the elasticity of relative prices with respect to the exchange rate a measure of the pass through effect tends to be underestimated in the u s by the presence of homogeneous products whose prices are set in dollars and tend to equalize through arbitrage therefore pricing to market estimates may be grossly overestimated for some industries in the u s

a multisectoral framework for the analysis of labor mobility and development in ldcs an application to postwar puerto rico the multisectoral framework of this study centers on the notion of dualism of a regional and technological nature 6 sectors are highlighted and disaggregated by location of economic activity and form of organization formal versus informal and rural versus urban the descriptive framework is applied to the special case of puerto rico and its experience with industrial development between 1950 and 1980 section i examines the multisectoral dualistic framework within the context of development theory and as a tool for identifying labor markets and labor mobility in developing countries section ii discusses methodological issues that provide a basis for estimating employment and earnings within a multisectoral framework section iii presents sectoral estimates of employment and earnings in puerto rico between 1950 and 1980 section iv considers possible extensions of the analysis and an assessment of the usefulness of the framework for understanding labor markets in economic development changes in sectoral estimates of employment and earnings in puerto rico between 1950 and 1980 have been dramatic this is consistent with an industrialization 1st development strategy the interdependency between urban formal and informal labor markets may be increasing declines in real urban informal sector earnings in the face of high and stable open unemployment are consistent with the view that informal temporary employment and formal job search are complementary activities the unexpected finding of this study is that the relative size of employment and earnings in the urban informal sector in puerto rico has declined with industrial expansion

implementation of ururguay round commitments the development challenge at the uruguay round developing countries took on unprecedented obligations not only to reduce trade barriers but to implement significant reforms both of trade procedures e g import licensing procedures customs valuation and of many areas of regulation that establish the basic business environment in the domestic economy e g technical sanitary and phytosanitary standards sps intellectual property law implementing such reforms are investment decisions in that implementation will require purchase of equipment training of people establishment of systems of checks and balances etc this will cost money and the amounts of money involved are substantial based on world bank project experience in the areas covered by the agreements an entire year s development budget is at stake in many of the least developed countries least developed country institutions in these areas are weak and would benefit from strengthening and reform however the authors analysis indicates that the world trade organization wto obligations reflect little awareness of development problems and little appreciation of the capacities of the least developed countries to carry out the functions that sps customs valuation intellectual property etc regulations address the content of these obligations can be characterized as the advanced countries saying to the others do it my way the authors touch at the beginning on another important point because of their limited capacity to participate in the uruguay round negotiations the wto process has generated no sense of ownership of the reforms to which wto membership obligates them from their perspective the implementation exercise has been imposed in an imperial way with little concern for what it will cost how it will be done or if it will support their development efforts this abstract was borrowed from another version of this item

the impact of foreign direct investment on export structure and employment generation abstract the literature on foreign direct investment often treats its determinants and consequences independently this is particularly so for empirical studies the purpose of this paper is to consider both aspects simultaneously and to provide some empirical evidence on the nature of foreign investment and its impact on export structure and employment generation the method consists of a model which includes both industry specific and location specific determinants of foreign direct investment in the export sector and their effects on the employment generating capacity of individual manufacturing industries it is estimated for three digit s i c industries in puerto rico in 1979 the results suggest that puerto rico s export sector consists of us based firms producing on a large scale these firms are primarily attracted to the island by relatively higher profits than on the mainland low wage labor is not considered an important inducement to foreign investment in puerto rico the labor intensity of the island s export sector lags behind that of comparable countries due to the capital intensive nature of its principal exports the island s manufacturing employment can be more effectively increased by altering the composition of exports than by inducing present firms to hire more workers

disguised protectionism and linkages to the gatt wto member states of the gatt wto have linked some issue areas outside trade to the institution and did so with varying depths at the same time they have chosen not to link other issue areas what accounts for this variation the author argues that states establish a legalized linkage between the gatt wto and an issue area outside it when they are uncertain about the possibilities of disguised protectionism such uncertainty exists under two conditions when diversity in regulations in an issue area across states generates a large adverse impact on trade negative externalities but that diversity can be justified at the international level for 1 having an independent objective apart from hampering trade and 2 when there are few alternative policies to achieve that objective legitimacy states establish a highly legalized linkage in these situations to reduce the uncertainty and minimize disguised protectionism by contrast when regulatory diversity exhibits low legitimacy states establish only a weakly legalized linkage in the absence of meaningful externalities they do not establish any linkages the author evaluates this argument in two ways he provides an overview of eleven issue areas about which there have been some debates or conflicts about linkages to the gatt wto in addition he carries out in depth case studies of three issue areas labor standards environmental standards and health safety standards the findings of this article contribute to a better understanding of international institutions and cooperation as well as of the evolution of the multilateral trade institution

the structure of income inequality in puerto rico abstract the kuznets hypothesis predicts that the level of income inequality will rise then fall during the course of economic development however empirical studies have found that for many countries inequality levels off after a certain stage of development and remains at this level for a long period of time in this paper one possible reason for the formation of such an inequality plateau is suggested puerto rico is used for our case study employing an augmented input output model we find that the 1963 puerto rican economy had reached such an inequality plateau with a very narrow range of inequality levels permitted by its economic structure we then investigate the relation between the inequality band and the degree of sectoral interdependence we find that under certain assumptions one can show a direct correspondence between the two with the equality range narrowing as the linkages increase once an economic system has reached a certain degree of sophistication in its linkage structure its inequality level may become immobile the implication of this is that after a point the natural course of development will not result in further reduction in inequality at this stage the government might have to intervene directly in income determination to reduce inequality

development and income distribution the case of puerto rico abstract using data spanning half a century the study addresses the trends and factors behind changes in income distribution in one of the earliest examples of development through integration to the world economy results show remarkable income growth that generated an ambiguous long term change in inequality but a drastic reduction in poverty public transfers played a decisive role in restraining growth in inequality and in reducing poverty levels that were also affected favorably by changes in the distribution of female earned income finally although rising schooling levels and their absolute returns increased households income generating capacities the realization of the potential was hindered by increasing levels of unemployment and economic inactivity

feeding the famine american food aid and the gmo debate in southern africa abstract the inclusion of genetically modified maize in food aid shipments to southern africa during the 2002 food crisis rekindled debates over agricultural biotechnology as the region edged ever closer to famine putting the lives to some 14 million africans at risk corporate pundits government officials and biotech s critics debated the health and environmental dangers posed by the new technology by situating the decision to send genetically modified maize to southern africa in the context of us european debates over agricultural biotechnology it becomes clear that the promotion of biotechnology has nothing to do with ending hunger in the region indeed american food aid shipments to southern africa have little to do with the famine at all instead i argue that us food aid policy following the 2002 crisis was intended to promote the adoption of biotech crops in southern africa expanding the market access and control of transnational corporations and undermining local smallholder production thereby fostering greater food insecurity on the continent

the location of overseas production and production for export by u s multinational firms abstract the location of overseas manufacturing production is influenced by common factors that operate in all industries notably proximity to the united states and to other markets within industries opposites attract low wage and low capital intensity parents choose high wage countries production for export is attracted by large internal markets in host countries economies of scale in production presumably make large markets economical as export bases another factor is high trade propensities of host countries u s firms tend to export from high wage countries but labor cost is not in general a major influence on the location of export production

cointegration error correction mechanism and trade liberalization the case of the spanish imports of manufactures this paper discusses the way that the effects of a tariff cut process on trade flows should be analysed when the variables are nonstationary using cointegration techniques and the error correction mechanism it is possible to establish the different types of structural break that might appear in the behaviour of a trade flow as a consequence of the trade liberalization process both in the short and in the long run in order to illustrate the results the evolution of the spanish imports of manufacturers after spain s entry into the european community is analysed

can public private partnerships leverage private investment in agricultural value chains in africa a preliminary review summary public private partnerships ppps may be one way of increasing the level of private sector investment into poorly performing agricultural value chains this paper considers a range of ppp mechanisms that respond to different market failures affecting such chains and draws on principal agent theory to illustrate the challenges it reviews emerging experience with a number of these mechanisms along with experience from other sectors that may shed light on generic problems of implementing ppps in africa while finding some positive impacts on investment it notes that state failures can also undermine ppp effectiveness as the evidence base is still limited it calls on organizations promoting innovative ppps to disclose available information for critical examination

prospects of trade liberalization between the developed and the developing countries abstract this paper analyzes the theoretical and policy aspects of various possible approaches multilateral preferential and others toward new initiatives for liberalizing trade relations between the developed and the developing countries the increasing differentiation between the newly industrializing countries nics and the less developed countries ldcs suggests that a multidimensional framework allowing flexibility in dealing with different subsets within the developing countries would be more relevant the paper analyzes the probable outcomes and constraints of the various trade liberalizing options with regard to their effects on trade flows welfare and terms of trade

distributional effects of household linkages the study uses input output models with disaggregated household sectors to demonstrate that important interhousehold linkages are ignored in standard input output models of both rural and urban regions the results indicate that higher income households are not strongly linked to low income households and that given equal changes in exogenous income low income households will have much higher impacts on the local economy than high income households in addition significant differences in household linkages were found between rural and urban regions

regional and technological dualism a dual dual development framework applied to puerto rico a dual dual framework is proposed which captures the prevailing regional dualism between rural and urban areas and technological dualism between traditional and modern techniques six interdependent sectors are specified 1 urban formal 2 urban informal 3 rural non farm formal 4 rural non farm informal 5 rural farm formal and 6 rural farm informal the framework is applied to the case of puerto rico and its experience with an industrialisation first development strategy between 1950 and 1970 it is shown that this framework lends itself well to the analysis of such issues as the pattern of employment migration and income distribution among regions and sectors

the precautionary principle and the law of unintended consequences abstract the purpose of this paper is to explore within a political economy framework the application of the precautionary principle to food and agricultural policy the paper reviews the precautionary principle in general but also raises issues associated with unintended consequences arising from it in addition the paper provides a general model of political economy that includes both precaution and consequences discusses issues related to precaution and irreversibility and illustrates how unintended consequences can affect welfare

a shoven whalley model of a small open economy an illustration with philippine tariffs abstract this paper describes an applied general equilibrium model of a price taking economy in both imports and exports sector specific factors are incorporated to avoid complete specialization problems a hicksian composite traded good market is used for achieving trade balance in the model foreign and domestic goods are assumed perfect substitutes for illustration philippine tariffs and export taxes are analyzed using the model

the household and employment in small scale nonfarm enterprises abstract this paper investigates the elasticity of hired labor demand in malawian small scale nonfarm enterprises to illustrate some key issues in considering employment policy in the less developed country ldc context where such enterprises comprise a large share of the labor market it is argued that recognizing the household character of production has important bearing on the estimation and understanding of the hired labor demand function a variant of the household production models which have become prevalent in analyses of underdeveloped agriculture is used to demonstrate conceptual differences from conventional studies of labor demand of particular relevance is the conclusion that the disemployment effect of wage hikes is likely to be smaller than in the more conventional enterprise and that the demographic composition of the household will affect employment patterns

the impact of sanitary and phytosanitary measures on market entry and trade flows in an attempt to disentangle the impact of sanitary and phytosanitary sps measures on trade patterns we estimate a heckman selection model on the hs4 disaggregated level of trade we find that aggregated sps measures constitute barriers to agricultural and food trade consistently to all exporters but conditional on market entry trade flows are positively affected by sps measures additionally we find that sps measures related to conformity assessment hamper market entry and trade flows while sps measures related to product characteristics pose an entry barrier but increase bilateral trade flows conditional on meeting the standard

market structure and performance of u s multinationals in brazil and mexico this paper presents the results of a regression analysis of the market structure determinants of profitability among the brazilian and mexican manufacturing affiliates of us multinational corporations the study employs data on 206 firms derived from a special survey specifically designed to obtain detailed information on their market structure environments and performance characteristics our estimates confirm that seller concentration product differentiation and relative market share are three sources of market power of these firms despite the many economic and noneconomic differences between brazil and mexico there are no systematic differences between the two in their underlying structure performance relationships

geographically discriminatory trade arrangements a bstract an eight region numerical general equilibrium model of global trade is used to investigate the impacts of various geographically discriminatory trade policy arrangements gdas on regional trade and welfare results suggest that the important factors determining gains and losses in any gda are such issues as whether initial levels of protection are asymmetric the relative sizes of participating regions and the pattern of trade between participating and non participating countries results also appear to confirm the implication of wonnacott and wonnacott 1981 that the gain from reducing a partner s tariff is typically a more important consideration in evaluating potential benefits from a customs union than the traditional concerns of trade creation and trade diversion

evaluating the trade restrictiveness of phytosanitary measures on u s fresh fruit and vegetable imports empirically assessing sanitary and phytosanitary regulations has proven difficult because most data sources indicate whether a regulation exists but provide no information on the type or importance of the respective measure in this article we construct a novel database of u s phytosanitary measures and match these to 47 fresh fruit and vegetable product imports from 89 exporting countries over the period 1996 2008 a product line gravity equation that accounts for zero trade flows is developed to investigate the trade impact of different pest mitigation measures while the results suggest that phytosanitary treatments generally reduce trade the actual restrictiveness of these measures diminishes dramatically as exporters accumulate experience and it vanishes when exporters reach a certain threshold the results have important policy implications considering the number of empirical studies that find a negative impact of non tariff measures on trade copyright 2013 oxford university press

is unilateral tariff reduction preferable to a customs union the curious case of the missing foreign tariffs during the past decade and a half an important part of the literature on customs unions has dealt with the question of whether a country might obtain the gains it would achieve from a customs union cu in an alternative way by a unilateral tariff reduction utr utr may involve a partial reduction in tariffs or a reduction all the way to zero a widely accepted conclusion see eitan berglas p 329 c a cooper and b f massell 1965b pp 745 47 roma dauphin ch 2 harry johnson p 280 melvyn krauss pp 417 19 and peter robson is that utr does indeed hold out the prospect for all the gains from a cuwithout the disadvantagesif two important simplifying assumptions are made namely that we ignore economies of scale and the effects of a customs union on the terms of trade 2 in the words of berglas it is important to note that if a preferential trade agreement does not affect the terms of trade then it does not allow for any mutually beneficial policy opportunities which are not open to each of the member countries separately through utr p 329 if this conclusion is correct it is very important in that it undercuts the earlier literature on customs unions the question asked by jacob viner in his pioneering work whether a cu represents a net gain or a net loss in economic efficiencybecomes unimportant except insofar as a customs union is based on terms of trade effects3 or economies of scale 4 since a cu can be summarily rejected in favor of utr the utr case would mean that for economists the puzzle is not to identify the efficiency gains or losses from a cu but rather to explain why countries form customs unions in the first place berglas p 329 cooper and massell 1965b p 247 and johnson p 270 indeed in his survey of cu theory krauss identifies the problem raised by cooper and massellof why countries form customs unionsas the theoretical issue of the past decade the 1960 s just as in the prior one the major issue as explicitly defined by jacob viner 1950 was whether a customs union represented a movement towards freer trade or greater protection p 413 the typical reply to the cooper massell question is countries tend to form a cu for noneconomic reasons berglas pp 329 30 5

scientific progress and irreversibility an economic interpretation of the precautionary principle abstract we consider the problem of the optimal use of a good whose consumption can produce damages in the future scientific progress is made over time that provides information on the distribution of the intensity of damages we show that this progress induces earlier prevention effort only if prudence is larger than twice absolute risk aversion this paper thus identifies the class of quite restrictive but plausible conditions such that scientific uncertainties justify an immediate reduction of the consumption of a potentially toxic substance

import restrictions in the presence of a health risk an illustration using fmd we present a simple model linking infection risk from imports to a tariff the risk causes the exporter of the infected product to face a higher tariff than would otherwise be the case a numerical example is developed for u s beef imports from nations with foot and mouth disease fmd the additional tariffs are sensitive to the specification of risk and the expected magnitude of loss due to an fmd outbreak for a low risk of importing fmd the tariffs levied against the exporter of fmd infected beef are not prohibitive but become so as the risk or expected output loss rises

does the central american common marke1 benefit its members does the central american common market benefit its members i introduction the members of the central american common market cacm have recently taken measures to revitalize their union they have formally pledged to improve regional economic integration and they have reinforced the common external tariff they took these measures in the belief that a stronger union would improve their economic welfare a belief that has also led both the united states and the european community to support a stronger union the idea that a regional trading group would improve economic welfare of the central american countries originated in the early 1950s when raul prebisch and other economists in the united nations economic commission for latin america ecla argued persuasively that such a union would help these countries develop their economies to many the views of the ecla economists were vindicated when the inceptionof the cacm in 1960 was followed shortly by accelerated economic growth in the region further support for their views came from quantitative studies cline and delgado 1978 willmore 1976 yotopoulos and nugent 1976 nugent 1974 and wilford 1970 which all concluded that the union provides static welfare gains for its members there is however room for skepticism about the benefits of the cacm much of the argument of the ecla economists is based on the notion that import substitution is a good way to promote economic development a notion that has since fallen into disrepute nor does the accelerated growth that followed the union s formation provide strong evidence that the cacm provides benefits the volume of trade between members is too small for the union to have had more than a minor effect on the region s economy so even if this effect were negative the region would presumably still have grown rapidly in the mid 1960s the evidence from the quantitative studies is also faulty these studies did not estimate directly the effects of the cacm but merely imputed these effects by assuming either that market shares or income elasticities would have remained constant without the union furthermore they assumed that supplies of different countries are perfect substitutes for each other whereas recent studies by collier 1979 grossman 1982 and anderson 1985 have shown that the degree of substitutability in demand between these supplies is important in determining how customs unions and other discriminatory tariff changes affect welfare it is particularly important to allow for less than perfect substitutability when analyzing the cacm because member imports from developed countries often have no close substitutes among locally produced goods in this paper the static welfare consequences of the cacm are reexamined with two important advances over the previous studies first direct estimates are made of the effects of the union second the shortcomings of the perfect substitutes assumption are overcome by allowing imports from different countries to be imperfect substitutes for each other and for domestic output the model which is partial equilibrium in nature also enjoys two advantages over the computable general equilibrium models such as those whalley 1985 and hamilton and whalley 1985 used to examine the effects of various economic integration schemes it requires fewer data and its operation is more transparent so it shows more clearly how introducing imperfect substitutes alters the traditional analysis of a customs union the model s main limitation is that it applies only to customs unions among small countries ii the model geometric presentation figures 1 2 and 3 show the home market and figure 4 the export market for country a a representative member of the cacm a s residents distinguish between four goods imports from other members imports from nonmembers domestic output for home consumption and exports

factors affecting inter industry variation of foreign ownership of manufacturing industry a set of hypotheses incorporating various explanations to foreign direct investment are developed and tested on a simultaneous equation model on australian data the analysis shows that foreign ownership of industry tends to be higher in the humanskill intensive and technology intensive industries high protection seems to be an important inducement for multinational enterprises participation in australian industry the results demonstrate how a major bias can be introduced when the simultaneity involved in the determination of foreign ownership is ignored

income distribution and development some stylized facts in recent years the relationship between income distribution and the process of development has come under increasing scrutiny much of the debate has focused on the hypothesis originally advanced by simon kuznets that the secular behavior of inequality follows an inverted u shaped pattern with inequality first increasing and then decreasing with development this hypothesis has become so much a part of the conventional wisdom on this subject that it has generated considerable skepticism about the welfare implications of the development process indeed on some interpretations developing countries face the grim prospect not just of increasing relative inequality but also of declining absolute incomes for the lower income groups

technical regulations and specialization in international trade abstract it is widely acknowledged that while technical regulations can improve welfare and facilitate markets they can also impede trade the trade impeding effects of technical regulations are especially worrisome for developing countries they frequently lack the human and capital resources necessary to satisfy technical measures and thus are more likely to be excluded from markets by technical measures this paper uses highly disaggregated us data on agricultural mining and manufacturing imports to examine the impact of technical regulations on trade patterns using instrumental variables estimation to correct for the potential endogeneity of technical regulations the analysis suggests that technical regulations substantially impinge on poor countries exports their weaker capacities to satisfy technical regulations lead them to specialize away from industries with heavier regulatory burdens

saving two in a billion quantifying the trade effect of european food safety standards on african exports abstract a growing concern over health risks associated with food products has prompted close examination of sanitary and phytosanitary standards in industrialized countries this paper quantifies the impact of a new harmonized aflatoxin standard set by the eu on food exports from africa we employ a gravity model to estimate the impact of changes in differing levels of protection based on the eu standard in contrast to those suggested by international standards the analysis is based on trade and regulatory survey data for 15 european countries and nine african countries between 1989 and 1998 our results suggest that the implementation of the new aflatoxin standard in the eu will have a negative impact on african exports of cereals dried fruits and nuts to europe the new eu standard which would reduce health risk by approximately 1 4 deaths per billion a year will decrease these african exports by 64 or us 670 million in contrast to regulation set through an international standard

how often are propositions on the effects of regional trade agreements theoretical curiosa this paper uses computational techniques to assess whether or not various propositions that have been advanced as plausible in the literature on regional trade agreements may actually hold the idea is to make probabilistic statements as to whether propositions of interest might hold rather than to restrict assumptions so they unambiguously hold our aim is to blend theory and numerical simulation and go beyond the ambiguous analytically derived propositions that dominate the theoretical literature so as to assess the likelihood of propositions holding for particular model specifications

determinants of foreign direct investment a tale of nine theoretical models abstract this paper presents a review of nine theoretical models of foreign direct investment fdi discussed are early studies of determinants of fdi 1 as well as determinants of fdi based on the neoclassical trade theory 2 ownership advantages 3 aggregate variables 4 the ownership location and internalization advantage framework 5 horizontal and vertical fdi models 6 the knowledge capital model 7 diversified fdi and risk diversification models 8 and policy variables 9 from each of the nine theories the relevant determinants of fdi are derived empirical studies indicate the importance of these determinants in the real world the paper shows that there is not one single theory of fdi but a variety of theoretical models attempting to explain fdi and the location decision of multinational firms therefore any analysis of determinants of fdi should not be based on a single theoretical model instead fdi should be explained more broadly by a combination of factors from a variety of theoretical models such as ownership advantages or agglomeration economics market size and characteristics cost factors transport costs protection risk factors and policy variables

a multiple time series analysis of labor supply and earnings in economic development abstract using multivariate time series techniques the dynamics of male and female labor supply and earnings in puerto rico are examined during a period of rapid economic developemnt 1953 1978 the temporal analysis suggests that aggregate male and female labor force participation rates are exogenous to male and female earnings in addition continous declines in male participation have been partly responsible for increases in both male and female earnings and a narrowing of relative earnings differentials the study also finds that the advent of the food stamp program in 1975 has resulted in a small reduction in male labor force participation moreover the inclusion of food stamps as an intervention component is quite useful in forecasting the male participation rate the forecasting accuracy of univariate and multivariate models is assessed with the result that in every instance the multivariate transfer functions prove superior overall the results support the incorporation of multiple time series in econometric studies of developing countries and provide evidence of its usefullness for development planning and policy

why do the free trade gain numbers differ so much the role of industrial organization in general equilibrium a small general equilibrium model calibrated approximately to match the canadian tradeable goods sector is used to examine the implications of a range of assumptions about pricing behaviour and entry barriers for the impact of free trade with the united states it turns out that only a model with an extreme combination of non competitive product market and free entry as well as unexploited scale economies can generate substantial gains from free trade other assumptions modelled include monopolistic competition market share pricing an economist s model and a mainstream industrial organization approach the predicted welfare gains range from zero to more than 7 per cent of gnp pourquoi est ce que les evaluations numeriques des gains derives de l accord de libre echange different tellement le role de l organisation industrielle dans l analyse d equilibre g6neral l auteur utilise un petit modele d equilibre general calibre pour approximer le secteur canadien des biens echangeables avec l exterieur dans son analyse des implications d un ensemble de postulats quant a la tarification et aux barrieres a l entree sur l impact du libre echange avec les etats unis il appert que seul un modele impliquant une combinaison extreme de marches de produit non concurrentiels et d entree libre ainsi que d economies d echelle non exploitees peut engendrer des gains substantiels comme resultat du libre echange on examine aussi d autres postulats concurrence monopolistique tarification pour maintenir une part du marche un modele a saveur economiste et 1 approche standard d organisation industrielle les gains de bien etre qu on predit selon les postulats de base couvrent un eventail de zero a 7 pour cent du pnb

interest groups trade liberalization and environmental standards in considering a country that imposes a minimum standard on an imported polluting good which generates negative consumption externalities we construct a common agency model in which a domestic environmental group and a foreign industrial lobby can influence the formation of the minimum standard by providing political contributions to the government this paper investigates the effects of trade liberalization on the political equilibrium environmental standard the pattern of trade environmental disutility and social welfare we find that trade liberalization tightens the minimum standard decreases imports of the polluting good and reduces environmental disutilities the importing country s social welfare however does not necessarily increase with trade liberalization the weaker the environmental group s lobbying efficiency or the stronger the foreign firm s lobbying efficiency the more likely it is that trade liberalization will enhance the importing country s welfare