This dissertation consists of three essays in international trade. The first chapter analyzes integration strategies of Korean firms that involve producing final products and providing post-production services for serving geographically separate foreign markets: high-income and low-income countries. I present a model in which heterogeneous firms must provide services for products through their subsidiaries in host countries, but can produce output in different locations. The model shows that the firm's equilibrium decision depends on its own productivity level and economic variables that affect production location and providing services. Using plant- and firm-level data of Korean firms, the empirical analysis provides the results that support the model's predictions. The second chapter analyzes the effects of regional economic integrations on investment patterns among Korean multinational firms. Using Korea's middle-income status, we develop a model in which heterogeneous firms in a middle-income country decide on the optimal FDI strategies for serving different regions: a developed (EEA) and a developing (AFTA) trade integrated regions. Following reduced trade costs between countries inside the trade integrated region, our model predicts that integrating into a regional economic zone affects firms with low productivity levels to enter the region via complex FDI strategies. Depending on the size of the region, however, complex FDI strategies differ such that firms investing in developed region tend to undertake local and export sales to the third country, whereas firms investing in developing region are more likely to engage in not only local and export sales to the third country, but also export sales to the parent country. The empirical analysis confirms the effect of different regional economic integrations on the strategy of firms with different productivity levels. The last chapter examines the conditions under which technology spillovers through workers' movement occur between foreign affiliates in the host country and determine whether such spillovers can affect the exporters' decisions to switch their strategies to serve foreign markets via FDI. Developing a simple two-period duopoly model, I find that the occurrence of technology spillovers is dependent on firm and host country characteristics such that spillovers are more likely to arise when firms have similar technology capabilities and in countries that incur low cost of training local workers. Under these circumstances, exporters are more likely to switch to FDI for serving foreign markets. However, I find that transport costs of goods have ambiguous effect on the occurrence of spillovers and thus, do not play a marginal role in exporters' decision. / text

Applying market arbitrage theory on daily data, we measure the empirical financial market convergence of NAFTA’s financial markets since 1994. Radar diagram and wavelet multi-resolution analysis (MRA) scalogram movies of the statistical moments of the term interest rate differentials visualize the multidimensional convergence. From the radar movies, we find: 1) a uniform disappearance of the average forward premia; 2) a non-uniform decline of bilateral financial market risk; 3) variation of bilateral financial market pressure measured by skewness; and 4) emergence of uniform market microstructures as measured by vanishing excess-kurtosis. From the MRA movies, we find that the national term structures of interest rates converge, since the stochastic resonance coefficients of the interest rate differentials lose significance: market energy at all frequencies dissipates into “white noise.” Testing Obrimah, Prakash and Rangan’s (2009) Lemma, we find that, after 2002, higher financial flow pressure is a necessary condition for lower financial market risk. / vii, 67 leaves ; 29 cm

This thesis is a discussion on whether every sector of human activity really is or needs to be 'global'. It discusses the impact that economic globalization has on the role of the nation-state and on the concept of democracy, at both local and international levels. Particular emphasis is put on some of the democratic challenges associated with dispute settlement at the WTO and also under foreign investment international instruments. It is argued that increased participation by non-state actors, particularly NGOs, in state-to-state and in investor-state arbitration threatens to weaken the arbitration process and does little to remedy alleged democratic deficiencies. The author concludes that many democratic concerns regarding these types of dispute settlement processes may be better addressed by strengthening national democracies. Increased public information, consultation, and participation in the shaping of foreign policy could reduce much of the criticism concerning both, international dispute settlement and decision-making.

In this thesis, the author investigates the link between the process of economic and political integration within the European Union and the phenomenon of nationalist assertion. By examining the cases of Flanders and Scotland, it is argued that increased nationalism is a normal and predictable outcome of the process of integration in general, and of the EU more specifically. By analysing four factors--economic incorporation, system-wide policies, systems of transfer payments, and political isolation--the author finds two trends within the nationalist movements. The first is that the nationalist groups seek to acquire several of the powers currently held by the states of which they are currently part, Belgium and the United Kingdom respectively. The second is that these sub-state groups see themselves as part of a new order in which states are losing their significance. Neither of the theories associated with these observations on their own, however, satisfactorily explains the link between integration and increased nationalist assertion in the nationalist movements studied. The conclusion is that the nationalist groups accept the concept of an authority above the level of the state, nation, or region, but emphasise the necessity of a large degree of regional autonomy and a real voice for these regions in the decision-making process of this authority. Since the European Union is and always has been an exclusive club of member states, nationalist groups consider, within the framework of current institutional arrangements, that full statehood may be the only way to achieve their goals.

Has economic integration improved the postwar growth performance of the actual fifteen member states of the European Union (EU)? To answer this question, we first construct an index of integration for each member state that explicitly accounts for global integration (GATT) as well as regional (European) integration. Using this variable, we test for permanent and temporary growth effects in a dynamic growth accounting framework, both in a time series setting for the (aggregate) EU and a panel approach for the EU member states. Although the hypothesis of permanent growth effects as postulated by endogenous growth models with scale effects is clearly rejected, we find significant levels effects: GDP per capita of the EU would be approximately one fifth lower today, if no integration had taken place since 1950. Interestingly, two third of this effect are due to GATT-liberalization. (author's abstract) / Series: EI Working Papers / Europainstitut

The thesis examines the economic integration process of refugees in rural Sweden, and its relation to geographical mobility. The mechanisms behind the integration process are explored through the concepts of networks, social bridge, and scalar. It is concluded that having a function that plays the role of a social bridge within networks positively affect the economic integration process for refugees. Factors that provide fundamental conditions for the function of a social bridge is identified to be cultural understanding and trustworthiness. The thesis highlights the spatial aspects of the case study area by considering networks between different scalar of global, national, and local. Through analyzing the positioning of the locality, relations are found with characteristics of refugees coming to the place. Those refugees mismatch with the local labor demand, yet they have positive impacts on the location in terms of a demographic aspect and internationalization opportunities. Under this condition, a social bridge is understood to be vital for overcoming the gap between the labor demands and a welcoming attitude toward refugees. As social bridge fosters interactions between refugees and society, it also has a positive effect on refugees’ mobility and attitude toward a place. Interaction opportunities provide a base for a new identity formation for refugees, which is essential to generate a sense of home. Feeling the place to be one’s home contributes to refugees staying. A critical realistic approach has been chosen as the way of studying integration process. By means of statistical data, employment patterns are explored in this area. A semistructured interview study was used to analyze the networks in depth.

This thesis explores the marketing of American capital goods in the Latin American Free Trade Association (LAFTA).The Importance of capital goods to LAFTA development was discussed. Machinery used for the production of other products is Important since LAFTA must achieve self-sufficiency by providing products manufactured in LAFTA before a common market is established.The problems of regional Integration were analyzed. These problems must be resolved If the common market Is to be functional by 1985. This date was established at Punta del Este, Uruguay, In 1967 by the chief executives of all Latin American nations.'In order to determine how American firms are preparing for the Latin American common market a mailed questionnaire was sent to 100 manufacturers of seven categories of capital goods. The 42 responses were analyzed to determine if American manufacturers are preparing for regional integration.The conclusion is that American firms are not confident that there will be a Latin American Common Market and they are not actively assisting LAFTA nations to achieve self-sufficiency.

This thesis employs a dynamic form of the gravity model and data from 1988-2005 to estimate the effects of RTAs in SSA on intra-African trade. The thesis proposes a better approach to examining member-nonmember trade relations of RTAs. This thesis is unique because it uses System GMM estimator to overcome econometric issues associated with estimating dynamic models. The results suggest that COMESA and SADC has led to a significant increase in intra and extra-RTA trade. ECOWAS has increased intra-ECOWAS trade but decreased extra-ECOWAS trade. ECCAS has had a negative impact on both intra-ECCAS and extra-ECCAS trade flows. The proposed approach of examining member-nonmember relationships provides better estimates. A comparative analysis is made to shed light on how high or low the trade creation effect of RTAs in SSA are. The results of this thesis support the view that the impact of RTAs in SSA is higher than perceived. / x, 61 leaves ; 29 cm

The thesis assesses the costs and benefits of Namibia's membership of the CMA to determine whether the CMA is an optimal currency area at least from the perspective of Namibia. This issue is examined from two main perspectives: (a) whether real exchange rate (RER) adjustment is frustrated by the inability to use the nominal exchange rate as an instrument of adjustment. Evidence of persistent RER misalignment may be seen as a necessary condition for an independent nominal exchange rate regime, however, it is not sufficient.(b) In this case, we examine whether nominal devaluations will have sustained effects on RER adjustment, given Namibia's structural features, such as the high degree of openness and a small nontradable sector. An equilibrium RER for Namibia is estimated using a single equation model of RER determination. The model is used to compute RER misalignments to determine whether there are sustained long periods of misalignments. To test whether nominal exchange rates can be effective in changing relative prices, a simple model was developed to measure pass-through of foreign price and exchange rate changes to domestic prices and wages. This provides useful information regarding whether nominal devaluations can be sustained. The results show that RER misalignments have been small, while the extent and speed of pass-through is complete and instantaneous for most items, suggesting that nominal devaluations in Namibia are not likely to have real effects. Even if it was the case that monetary autonomy cannot be supported on grounds of affecting relative prices, it may nevertheless be important for Namibia to pursue an independent exchange rate strategy. To examine this possibility, the analysis was extended by looking at costs and benefits of OCAs which do not rely on the ability to change relative prices. Benefits arising from savings on transactions costs and on foreign exchange reserves amounted to 3.8% and 2.4% of GDP, respectively. Further, we demonstrated that past "shocks" between Namibia and South Africa were highly correlated. The findings of the thesis suggest that the CMA is an optimal exchange regime for Namibia.

This thesis is a case study of the effects of association with the EU on domestic industrial policy making in Poland during 1990-1995 from a liberal intergovernmentalist perspective, showing how association affected the industrial policy-making autonomy of the Government in relation to other domestic actors in two ways. First, because domestic interests were weak and divided in transition-era Poland, the EU provided political leaders with a sharper focus and allowed them to consolidate domestic support for government industrial policy initiatives. Second, where domestic opposition arose, association helped political leaders to overcome it by giving industrial policy initiatives greater legitimacy and allowing them to be portrayed as "mandatory" for EU membership. The manner in which the Government handled domestic pressure for intervention from state enterprises seeking to avoid painful adjustments and restructuring during the transition offers a prime test of the effects of EU association on industrial policy-making autonomy. In most areas, the pro-market, pro-competition policies mandated by EU association were incompatible with the nature and level of governmental involvement in industry under socialism, requiring an end to state subsidies and other forms of discretionary support enjoyed by state enterprises for nearly four decades. Incorporating case studies of the steel and textiles sectors, this thesis illustrates how in the context of transition, the Government's commitment to EU association was stronger than for other recent EU members and ensured that the Government would deviate from the course charted in the Association Agreement only in cases of intense domestic pressure, and even then only temporarily. Accordingly, in a new twist to liberal intergovernmentalism, Poland's transitional domestic situation coupled with the country's enduring commitment to eventual EU membership ensured that the effects of association on policy-making autonomy were more pronounced in Poland than in existing member states.