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This paper presents a model of international trade that features heterogeneous and potentially mu... more This paper presents a model of international trade that features heterogeneous and potentially multinational firms, relative endowment differences across countries, and consumer taste for variety. Firms are potentially multinational in that they can choose to supply the export market by means of either conventional exports or by establishing a production base abroad. Heterogeneity of firms is introduced via the Melitz model.
The Use of Economics in International Trade and Investment Disputes
International Review of Law, 2018
TradeLab is a global network of universities and training centers, founded in 2013, that conducts... more TradeLab is a global network of universities and training centers, founded in 2013, that conducts pro bono projects for developing countries and other stakeholders such as Civil Society Organizations (CSOs) and Small and Medium-Sized Enterprises (SMEs) (hereafter: "beneficiaries"). TradeLab's overall goal is "to empower countries and smaller stakeholders to reap the full development benefits of institutions and rules that govern our global economy". 4 TradeLab's contribution to capacity building centers on "legal clinics": small teams of students work from their respective places of study with and for specific beneficiaries on semestrial basis. Student teams are closely supervised by experienced academics and mentored by expert practitioners in the field. Using internet tools, students, experts, and beneficiaries on a given project are virtually connected across the globe, from centers of expertise in Geneva or Washington, DC, to remote places in Africa or Latin America. Research memoranda and other non-confidential output are posted on the TradeLab website for all interested parties to access. TradeLab thereby seeks to achieve three objectives: (i) help beneficiaries build capacity; (ii) train students; and (iii) inform and create awareness within the wider public. Inspired by crowdsourcing and the sharing-economy, TradeLab functions as a global innovation and learning network. No one pays (all contributions are made pro bono), but all participants gain: direct beneficiaries enjoy free help and on-the-job training; students "learn by doing" and receive university 1 This chapter was made possible thanks to the NPRP grant # [NPRP 7-1815-5-272] from the Qatar National Research Fund (a member of Qatar Foundation). The statements made herein are solely the responsibility of the authors.
The Use of Economics in International Trade and Investment Disputes
Twenty-first-century trade agreements increasingly are a source of international law on investmen... more Twenty-first-century trade agreements increasingly are a source of international law on investment and competition. With chapters contributed by leading practitioners and academics, this volume draws upon investor-state arbitration and competition/antitrust disputes to focus on the application of economics to international trade law and specifically WTO law. Written in an accessible language suitable for a broad readership while providing concrete insights designed for the specialist, this book will be of use to those active or interested in the related fields of trade disputes, competition law, and investor-state arbitration.
SSRN Electronic Journal, 2016
In this paper we assess the quality and coherence of the use of economics in dispute settlement i... more In this paper we assess the quality and coherence of the use of economics in dispute settlement in two fields of international economic law: international trade and international investment law. We argue that four economic concepts are frequently used and/or of critical importance for both international trade and investment law. Those concepts are the concepts of "likeness"/"like circumstances", causality, "necessity" and damage calculation. We highlight differences in the way in which economics has been applied to assess these concepts and argue that coherence in the use of economics can be increased by reassessing the way in which economics is brought into submissions by parties and the processes that are relevant for adjudicators when interpreting economic evidence. We argue that a common set of guidelines for submitting quantitative evidence in WTO or investor-state dispute settlement proceedings can contribute greatly to setting quality standards and to creating trust as to the reliability and acceptability of economic evidence submitted to adjudicators. In an appendix to this paper we make suggestions as to what such guidelines could look like.
The Prospects of International Trade Regulation
Challenges for the Global Trading System
The Singapore Economic Review, 2010
The Singapore Economic Review, 2010
This paper models trade and FDI in a world consisting of two symmetric countries. Using a monopol... more This paper models trade and FDI in a world consisting of two symmetric countries. Using a monopolistic competition model of international trade which includes positive trade costs and endogenous multinational firms, we introduce an intermediate good and allow firms to fragment production internationally. The result is that under certain conditions, identical countries engage in both intra-industry FDI and intra-industry, intra-firm trade. This result provides a theoretical explanation for a well-observed but little explained phenomenon in the overlap between the theory of international trade and the theory of multinational enterprises. Examination of welfare demonstrates that firms make location choices that happen to maximise consumer welfare.
This paper presents a model of international trade that features heterogeneous and potentially mu... more This paper presents a model of international trade that features heterogeneous and potentially multinational firms, relative endowment differences across countries, and consumer taste for variety. Firms are potentially multinational in that they can choose to supply the export market by means of either conventional exports or by establishing a production base abroad. Heterogeneity of firms is introduced via the Melitz model.
The Use of Economics in International Trade and Investment Disputes
International Review of Law, 2018
TradeLab is a global network of universities and training centers, founded in 2013, that conducts... more TradeLab is a global network of universities and training centers, founded in 2013, that conducts pro bono projects for developing countries and other stakeholders such as Civil Society Organizations (CSOs) and Small and Medium-Sized Enterprises (SMEs) (hereafter: "beneficiaries"). TradeLab's overall goal is "to empower countries and smaller stakeholders to reap the full development benefits of institutions and rules that govern our global economy". 4 TradeLab's contribution to capacity building centers on "legal clinics": small teams of students work from their respective places of study with and for specific beneficiaries on semestrial basis. Student teams are closely supervised by experienced academics and mentored by expert practitioners in the field. Using internet tools, students, experts, and beneficiaries on a given project are virtually connected across the globe, from centers of expertise in Geneva or Washington, DC, to remote places in Africa or Latin America. Research memoranda and other non-confidential output are posted on the TradeLab website for all interested parties to access. TradeLab thereby seeks to achieve three objectives: (i) help beneficiaries build capacity; (ii) train students; and (iii) inform and create awareness within the wider public. Inspired by crowdsourcing and the sharing-economy, TradeLab functions as a global innovation and learning network. No one pays (all contributions are made pro bono), but all participants gain: direct beneficiaries enjoy free help and on-the-job training; students "learn by doing" and receive university 1 This chapter was made possible thanks to the NPRP grant # [NPRP 7-1815-5-272] from the Qatar National Research Fund (a member of Qatar Foundation). The statements made herein are solely the responsibility of the authors.
The Use of Economics in International Trade and Investment Disputes
Twenty-first-century trade agreements increasingly are a source of international law on investmen... more Twenty-first-century trade agreements increasingly are a source of international law on investment and competition. With chapters contributed by leading practitioners and academics, this volume draws upon investor-state arbitration and competition/antitrust disputes to focus on the application of economics to international trade law and specifically WTO law. Written in an accessible language suitable for a broad readership while providing concrete insights designed for the specialist, this book will be of use to those active or interested in the related fields of trade disputes, competition law, and investor-state arbitration.
SSRN Electronic Journal, 2016
In this paper we assess the quality and coherence of the use of economics in dispute settlement i... more In this paper we assess the quality and coherence of the use of economics in dispute settlement in two fields of international economic law: international trade and international investment law. We argue that four economic concepts are frequently used and/or of critical importance for both international trade and investment law. Those concepts are the concepts of "likeness"/"like circumstances", causality, "necessity" and damage calculation. We highlight differences in the way in which economics has been applied to assess these concepts and argue that coherence in the use of economics can be increased by reassessing the way in which economics is brought into submissions by parties and the processes that are relevant for adjudicators when interpreting economic evidence. We argue that a common set of guidelines for submitting quantitative evidence in WTO or investor-state dispute settlement proceedings can contribute greatly to setting quality standards and to creating trust as to the reliability and acceptability of economic evidence submitted to adjudicators. In an appendix to this paper we make suggestions as to what such guidelines could look like.
The Prospects of International Trade Regulation
Challenges for the Global Trading System
The Singapore Economic Review, 2010
The Singapore Economic Review, 2010
This paper models trade and FDI in a world consisting of two symmetric countries. Using a monopol... more This paper models trade and FDI in a world consisting of two symmetric countries. Using a monopolistic competition model of international trade which includes positive trade costs and endogenous multinational firms, we introduce an intermediate good and allow firms to fragment production internationally. The result is that under certain conditions, identical countries engage in both intra-industry FDI and intra-industry, intra-firm trade. This result provides a theoretical explanation for a well-observed but little explained phenomenon in the overlap between the theory of international trade and the theory of multinational enterprises. Examination of welfare demonstrates that firms make location choices that happen to maximise consumer welfare.