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Articles 1 - 11 of 11

Full-Text Articles in International Economics

Trade, Firm Selection, And Industrial Agglomeration, Wen-Tai Hsu, Ping Wang Nov 2012

Trade, Firm Selection, And Industrial Agglomeration, Wen-Tai Hsu, Ping Wang

Research Collection School Of Economics

We develop a model of trade and agglomeration that incorporates trade in both intermediate goods and final goods and allows all firms to choose their locations. There are two types of labor: skilled labor, which is mobile, and unskilled labor, which is immobile. Upon choosing its factory site, a final goods firm that is managed by skilled labor can produce these goods using local unskilled labor and a variety of intermediate goods produced by productivity-heterogeneous producers. We characterize world equilibrium and establish the conditions under which industrial agglomeration arises as a stable equilibrium outcome. We show that when the unskilled ...


Foreign Direct Investment: Clearing The Infrastructure Bottlenecks, Kim Song Tan, Sim Yee Lau Oct 2012

Foreign Direct Investment: Clearing The Infrastructure Bottlenecks, Kim Song Tan, Sim Yee Lau

Research Collection School Of Economics

No abstract provided.


The Educated Middle Class, Their Economics Prospects, And The Arab Spring, Davin Chor, Filipe R. Campante Sep 2012

The Educated Middle Class, Their Economics Prospects, And The Arab Spring, Davin Chor, Filipe R. Campante

Research Collection School Of Economics

The recent uprisings in the Arab World carry a broader lesson, highlighting the importance of sustaining an economy that provides sufficient job opportunities for an increasingly educated and skilled middle class.


Why Smes Should Aim At Becoming Exporters, Hian Teck Hoon Jul 2012

Why Smes Should Aim At Becoming Exporters, Hian Teck Hoon

Research Collection School Of Economics

In the fortnightly series entitled 'Engage SMU profs', Professor Hoon Hian Teck, Associate Dean of the School of Economics, answers the questions: Should SMEs aim to become exporters rather than serve only the domestic market? What are the benefits to SMEs in doing so? Does the smallness in size limit their productivity growth? Are there any channels for SMEs to get assistance from the authorities, and what are these? He commented that if more of our local SMEs look towards the international marketplace and sell to foreign markets, not only will Singapore's GDP be boosted, local businessmen will also ...


Country Image And International Trade, Pao Li Chang, Tomoki Fujii Jul 2012

Country Image And International Trade, Pao Li Chang, Tomoki Fujii

Research Collection School Of Economics

We study the impact of country image on international trade flows. We find that a one percentage point increase in the positive response ratio - the proportion of people in the importing country who view the exporting country positively - is associated with at least a one percent increase in the aggregate trade flow. By disaggregating trade flows by the type of goods, we also find that both homogeneous and differentiated goods are positively affected by better country image and that the impact of country image tends to be larger when more substitutes are available in the international market.


Off The Cliff And Back? Credit Conditions And International Trade During The Global Financial Crisis, Davin Chor, Manova Kalina May 2012

Off The Cliff And Back? Credit Conditions And International Trade During The Global Financial Crisis, Davin Chor, Manova Kalina

Research Collection School Of Economics

We examine the collapse of international trade flows during the 2008-2009 global financial crisis using detailed data on the evolution of monthly U.S. imports over the November 2006 - April 2009 period. We show that credit constraints and the reduction in the availability of external capital were an important channel through which the crisis affected trade volumes. We identify the effects of credit tightening by exploiting the variation in the cost of capital across countries and over time, as well as the variation in financial dependence across sectors. We find that countries with higher interbank interest rates and thus tighter ...


Organizing The Global Value Chain, Pol Antras, Davin Chor May 2012

Organizing The Global Value Chain, Pol Antras, Davin Chor

Research Collection School Of Economics

We develop a property-rights model of the firm in which production entails a continuum of uniquely sequenced stages. In each stage, a final-good producer contracts with a distinct supplier for the procurement of a customized stage-specific component. Our model yields a sharp characterization for the optimal allocation of ownership rights along the value chain. We show that the incentive to integrate suppliers varies systematically with the relative position (upstream versus downstream) at which the supplier enters the production line. Furthermore, the nature of the relationship between integration and “downstreamness” depends crucially on the elasticity of demand faced by the final-good ...


Risk And The Technology Content Of Fdi: A Dynamic Model, Pao Li Chang, Chia-Hui Lu Mar 2012

Risk And The Technology Content Of Fdi: A Dynamic Model, Pao Li Chang, Chia-Hui Lu

Research Collection School Of Economics

This paper incorporates risk into the FDI decisions of firms. The risk of FDI failure increases with the gap between the South's technology frontier and the technology complexity of a firm's product. This leads to a double-crossing sorting pattern of FDI—firms of intermediate technology levels are more likely than others to undertake FDI. It is with the attempt to relax the upper bound of the technology content of FDI, we argue, that many FDI policies are created. The theory's predictions are consistent with the empirical patterns of FDI in China by US and Taiwanese manufacturing firms.


Why Was The Arab World Poised For Revolution? Schooling, Economic Opportunities, And The Arab Spring, Filipe R. Campante, Davin Chor Mar 2012

Why Was The Arab World Poised For Revolution? Schooling, Economic Opportunities, And The Arab Spring, Filipe R. Campante, Davin Chor

Research Collection School Of Economics

What underlying long-term conditions set the stage for the Arab Spring? In recent decades, the Arab region has been characterized by an expansion in schooling coupled with weak labor market conditions. This pattern is especially pronounced in those countries that saw significant upheaval during the first year of the Arab Spring uprisings. We argue that the lack of adequate economic opportunities for an increasingly educated populace can help us understand episodes of regime instability such as the Arab Spring.


In Support Of The Trips Agreement, Amanda Jakobsson, Paul S. Segerstrom Feb 2012

In Support Of The Trips Agreement, Amanda Jakobsson, Paul S. Segerstrom

Research Collection School Of Economics

This paper challenges the conventional wisdom that the TRIPs agreement is bad for developing countries. We present a dynamic general equilibrium model of North-South trade that allows us to study the implications of stronger intellectual property rights (IPR) protection and simultaneous trade liberalization. In our model, stronger IPR protection in the South (TRIPs) leads to more innovation in the North, more technology transfer to the South and higher long-run southern consumer welfare. The South also benefits from trade liberalization but the welfare gains from TRIPs are considerably larger.


Optimal International Agreement And Treatment Of Domestic Subsidy, Gea M. Lee Jan 2012

Optimal International Agreement And Treatment Of Domestic Subsidy, Gea M. Lee

Research Collection School Of Economics

We investigate how a domestic subsidy is treated in an international agreement, when a government, having incentive to use its domestic subsidy as a means of import protection, can disguise its protective use of subsidy as a legitimate intervention with which to address a market imperfection. We show that any optimal agreement, as opposed to the conventional message of the targeting principle, restricts the home government’s freedom to select its domestic subsidy in order to increase the market-access level for foreign exporters. Our finding suggests that a proper restriction on domestic subsidy is somewhere between GATT and WTO rules.