The International Economy

Trade Liberalization and Technology Transfer through an Intermediate Product

Jota Ishikawa

2007 Volume 2007 Issue 11 Pages 3-10
Published: 2007
Released on J-STAGE: April 13, 2011

DOIhttps://doi.org/10.5652/internationaleconomy.2007.3

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Horiuchi and Ishikawa (2007) examine the relationship between tariffs on the final good and international technology transfer through trade in an intermediate good. They show that a decrease in the tariff as well as an increase may lead the North monopolist to transfer technology to a South potential entrant. This paper shows that tariff-reductions may induce technology transfer even if technologytransfer competition among multiple North firms is taken into account.

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Towards a New Dynamic General Equilibrium Model of Trade and Wealth Distribution

Koji Shimomura

2007 Volume 2007 Issue 11 Pages 11-16
Published: 2007
Released on J-STAGE: April 13, 2011

DOIhttps://doi.org/10.5652/internationaleconomy.2007.11

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This paper formulates a new two-country dynamic Heckscher-Ohlin model of trade with endogenous time preferences a la Uzawa (1968), which explains not only trade patterns but also international wealth distribution between countries.

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Professor Kiyoshi Kojima's Contributions to FDI Theory: Trade, Growth, and Integration in East Asia

Terutomo Ozawa

2007 Volume 2007 Issue 11 Pages 17-33
Published: 2007
Released on J-STAGE: April 13, 2011

DOIhttps://doi.org/10.5652/internationaleconomy.2007.17

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Professor Kojima of Hitotsubashi University is a leading Japanese economist. This article reviews and interprets two of his major ideas; a theory of pro-trade FDI and an extended “flying-geese” theory and explores their theoretical implications. Pro-trade FDI rests on the doctrine of comparative advantage, yet surprisingly Ricardo failed to apply the same logic to FDI flows. Production fragmentation that leads to intraindustry trade is governed by the doctrine. Kojima extends the evolutionary sequence of “importing-domestic production-exporting” to the next phase of “exporting-outward FDIimporting, ”hence a full circle from importing to importing. This structural transformation underlines East Asian industrial dynamism.

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Does FDI Have Impacts on the Labor Productivity of Vietnamese Domestic Firms?

Le Thanh Thuy

2007 Volume 2007 Issue 11 Pages 35-56
Published: 2007
Released on J-STAGE: April 13, 2011

DOIhttps://doi.org/10.5652/internationaleconomy.2007.35

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Foreign direct investment has been considered a very important factor in the growth of recent Vietnam's economy and so far it has drawn a lot of concerns of economic researches in Vietnam. However, studies on the impacts of foreign direct investment on Vietnam's economy, especially the technological spillovers, are scarce compared with other developing countries. This study makes an attempt to figure out the main channels and estimate the degree of spillover effects in Vietnam using industry level data for 1995-1999 and 2000-2002 periods. The linkage between foreign investors and domestic private sectors is found to play an important role for technological spillovers from FDI in Vietnam.

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Impacts of Japanese FTAs/EPAs: Preliminary Post Evaluation

Mitsuyo Ando

2007 Volume 2007 Issue 11 Pages 57-83
Published: 2007
Released on J-STAGE: April 13, 2011

DOIhttps://doi.org/10.5652/internationaleconomy.2007.57

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This paper attempts to provide post evaluation of Japanese EPAs and draw policy implications for future FTAs/EPAs. Our gravity model estimation as well as detailed analysis on trade and actual tariff reduction by EPAs demonstrates that the Japan-Singapore EPA has almost no direct impact on trade since actual reduction of tariffs by the EPA is quite limited. On the other hand, our empirical investigation confirms a certain degree of positive impact of the Japan-Mexico EPA on trade, particularly on the export side, and investment. Several important outcomes of the EPA beyond tariff removal are also revealed.

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