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International Trade and Multinational Activity [electronic resource] :Heterogeneity of Firms, Incentives for Foreign Direct Investment, and International Business Cycle Dynamics / by Julian Emami Namini.

by Namini, Julian Emami [author.]; SpringerLink (Online service).
Material type: materialTypeLabelBookSeries: Lecture Notes in Economics and Mathematical Systems: 573Publisher: Berlin, Heidelberg : Springer Berlin Heidelberg, 2006.Description: X, 159 p. 37 illus. online resource.ISBN: 9783540327196.Subject(s): Economics | International economics | Macroeconomics | Economics/Management Science | International Economics | Economic Theory | Macroeconomics/Monetary EconomicsDDC classification: 337 Online resources: Click here to access online
Contents:
Gains from trade with firm heterogeneity -- The international organization of the firm -- International business cycle dynamics with Heckscher-Ohlin trade -- Conclusions.
In: Springer eBooksSummary: During the last 25 year, the neoclassical Heckscher-Ohlin trade theory has been extended to the ‘new’ trade theory by including imperfect competition and fixed costs into the analysis of trade relations. Furthermore, these micro-oriented trade models are increasingly used to analyze macro-oriented questions. Chapter 2 of this study investigates the dynamic welfare effects of exposure to trade in a new trade model, which is extended by firm heterogeneity. It is analyzed under which conditions exposure to trade with firm heterogeneity increases or decreases steady state welfare of a country. Chapter 3 uses a new trade model to explore which country-specific conditions give rise to horizontal or vertical multinational activity. Finally, chapter 4 combines the Heckscher-Ohlin model and a new trade model with horizontal multinational firms with the macro-oriented real business cycle model and analyzes the role of goods trade and horizontal multinational firms in international business cycle transmission.
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Gains from trade with firm heterogeneity -- The international organization of the firm -- International business cycle dynamics with Heckscher-Ohlin trade -- Conclusions.

During the last 25 year, the neoclassical Heckscher-Ohlin trade theory has been extended to the ‘new’ trade theory by including imperfect competition and fixed costs into the analysis of trade relations. Furthermore, these micro-oriented trade models are increasingly used to analyze macro-oriented questions. Chapter 2 of this study investigates the dynamic welfare effects of exposure to trade in a new trade model, which is extended by firm heterogeneity. It is analyzed under which conditions exposure to trade with firm heterogeneity increases or decreases steady state welfare of a country. Chapter 3 uses a new trade model to explore which country-specific conditions give rise to horizontal or vertical multinational activity. Finally, chapter 4 combines the Heckscher-Ohlin model and a new trade model with horizontal multinational firms with the macro-oriented real business cycle model and analyzes the role of goods trade and horizontal multinational firms in international business cycle transmission.

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