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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jebo.2008.12.003 Byline: Amitrajeet A. Batabyal (a), Hamid Beladi (b) Keywords: Alien species; International trade; Market structure; Social welfare; Tariff Abstract: We first construct three measures of the expected damage from the unintentional introduction of alien species into a country called Home. We then focus on four market structures. First, perfect competition prevails in both Home and Foreign, and Home is a small country. Second, the Home and the Foreign markets are both perfectly competitive, but Home is now a large country. Third, the exporter in Foreign is a monopolist and there are no import competing firms in Home. Finally, the Foreign exporter and the import competing firm in Home engage in Cournot competition. In all four scenarios, we analyze the impact of small and optimal Home tariffs on prices, exports, imports, the damage from alien species, and social welfare in Home. Inter alia, our analysis identifies conditions under which it makes sense to use trade policy (tariffs) to regulate invasive species and conditions under which it does not. Author Affiliation: (a) Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA (b) Department of Economics, University of Texas at San Antonio, 1600 N. Loop 1604 West, San Antonio, TX 78249-0631, USA Article History: Received 14 July 2006; Revised 10 December 2008; Accepted 11 December 2008

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-8586.2008.00289.x Byline: Sugata Marjit (*), Hamid Beladi ([dagger]) Keywords: goods trade; technology trade; welfare Abstract: ABSTRACT Using a Ricardian setting we argue that trade in technology generates higher global welfare relative to trade in goods. Hence, free trade in commodities can only be the second best outcome for the world welfare. Author Affiliation: (*)Hong Kong Polytechnic University and Centre for Studies in Social Sciences, Calcutta, India ([dagger])University of Texas at San Antonio, USA Article note: Correspondence: Hamid Beladi, Department of Economics, University of Texas at San Antonio, San Antonio TX 78249, USA. Tel: 210-458-7038; Fax: 210-458-7040; Email: hamid.beladi@utsa.edu. We are grateful to an anonymous referee for insightful comments on an earlier version of this paper. We are solely responsible for any possible remaining errors.

It is well known that high tariffs tend to induce foreign direct investment (FDI) by encouraging the investors to jump the "tariff wall." This paper examines the economic interaction among tariffs, FDI, and international joint ventures (IJV). We show that in the presence of a strong local competitor, even if opening a fully owned subsidiary is not profitable to a foreign firm, the foreign firm may still enter the host country market through IJV. However, IJV is not profitable for sufficiently high tariff rates. Hence, we argue that liberal trade policies may attract foreign investments through the formation of joint ventures. JEL Classification: F1, L2, O1, D2, P, 1. Introduction A major incentive for foreign direct investment (FDI) in countries that restrict trade is to jump tariff and non-tariff barriers. Local production helps in reducing costs due to [...]

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.reseneeco.2008.10.005 Byline: Hamid Beladi (a), Chi-Chur Chao (b), Bharat R. Hazari (c), Jean-Pierre Laffargue (d) Keywords: Endogenous tourism; optimal pollution taxes Abstract: This paper examines the effects of pollution taxes on welfare and environment for a small open economy. In the presence of tourism, pollution taxes provide a double dividend of less pollution and improvements in the tourism terms of trade. The optimal pollution taxes are derived under exogenous and endogenous tourism, and they can be greater or less than the marginal damage of pollution perceived by the domestic residents. Numerical simulations show that the optimal tax rate is larger under exogenous tourism. Author Affiliation: (a) Department of Economics, College of Business, University of Texas at San Antonia, 6900 north loop 1604 west, San Antonio, TX 78249-0633, United States (b) Department of Economics, Chinese University of Hong Kong, Shatin, Hong Kong (c) Department of Economics and Finance, City University of Hong Kong, Kowloon, Hong Kong (d) University of Paris I and CEPREMAP, Paris, France Article History: Received 3 April 2006; Revised 9 June 2008; Accepted 20 October 2008

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.ejor.2004.07.065 Byline: Amitrajeet A. Batabyal (a), Hamid Beladi (b) Keywords: Natural resources; Decision analysis; Economics; Risk management; Biological invasion Abstract: We propose and develop a new framework for studying the problem of preventing biological invasions caused by ships transporting internationally traded goods between countries and continents. Specifically, we apply the methods of queuing theory to analyze the problem of preventing a biological invasion from a long run perspective. First, we characterize two simple regulatory regimes as two different kinds of queues. Second, we show how to pose a publically owned port manager's decision problem as an optimization problem using queuing theoretic techniques. Third, we compare and contrast the optimality conditions emanating from our analysis of the M/M/I/U and the M/M/I/I inspection regimes. We conclude by discussing possible extensions to our basic models. Author Affiliation: (a) Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA (b) Department of Economics, College of Business, University of Texas at San Antonio, San Antonio, TX 78249, USA Article History: Received 5 March 2004; Accepted 13 July 2004

Queuing theory is used for a study on preventing biological invasions caused by global transport of goods.

The study uses the theory of semi-Markov processes to demonstrate that when there is uncertainty about the evolution of the stock of a natural resource, the use of time restrictions can lead to the collapse of said resource. Also, an approach to natural resource management under uncertainty is presented, where time restrictions are used to maximize the likelihood that a particular resource will not collapse over time.

In this paper, we argue that the Harris-Todaro (HT) framework sometimes satisfies an 'envelope' property, which makes it work like a full-employment Heckscher-Ohlin-Samuelson (HOS) model. Then, the HT structure produces very similar results as one gets in the standard HOS framework. Differences arise because the 'envelope' condition may break down. We show how several celebrated results in the HT structure can have this reinterpretation. JEL classification: F10; F11; F16; 017; 018 Keywords: Harris-Todaro framework; Heckscher-Ohlin-Samuelson model; Envelope

Usage of Ricardo-Viner model, to examine environmental policy of a developing country with relation to time inconsistency is analyzed.

A new study analyses the optimal management of an ecological-economic systems, focusing on resource allocation in the aquatic system Chesapeake Bay.

In the context of non-diversifiable and sector-specific risks in labour markets, we show that the resulting factor market distortion- attributable to an endogenous intersectoral wage differential - can provide a possible rationale that explains why larger wage dispersion prevails in developing nations. We also demonstrate how endogenous wage distortions spill over to capital markets, with capital-poor economies offering lower rates of returns. In addition, we show that inequality in the distribution of wealth further deviates factor allocation away from first-best and impairs intersectoral mobility of the poor.

A study was conducted to investigate a theoretical problem with respect to the general equilibrium theory of international trade, with the analysis being confined to the context of free trade. The scenario examined is a situation where expansion within the import-competing sector positively correlates to an increase in the level of imports and where the goods considered are intermediate rather than final goods. This scenario would allow drastic modifications of welfare propositions of growth in protected import competing industries.

An active environmental policy combined with a liberal policy on foreign investment provides an optimal approach for less developed countries. This is evident in a study of the welfare and policy effects of pollution taxes and foreign capital quotas for a small developing economy using a simple, general equilibrium model. It is also argued that the host country may find it beneficial to charge a pollution tax equal to the pure Pigovian tax. The optimal policy combination therefore would be a pollution tax above marginal environmental damage along with free flow of foreign capital.

Economic research suggests that free trade has a negative impact on social welfare and investment in the US. Historical evidence proves that analysts who suggest that free trade provides an opposite effect are wrong. Graphical representations of the relationship between trade deficit and investment, and trade deficit and wages are illustrated.

In this paper a Harris-Todaro migration model is developed with the urban manufacturing sector supplying a crucial input for the rural sector. Capital is region specific but flows freely between two urban sectors. Final goods are traded and have exogenously fixed prices. If this economy imposes a tariff on the import-competing manufacturing sector, employment might go down even if the protected sector is labour intensive. The paper describes how intersectoral linkages can play a significant role in determining the employment effects of a tariff.

The US has a major trade deficit and this has led to a debate on the benefits of free trade and protectionism. Balanced free trade is usually seen as preferable to economic self-sufficiency. Mild protectionism designed to balance trade could have a beneficial impact, though protectionism should not be used to create trade surpluses. This is indicated by using a static model with a trade deficit, but the cost of the deficit in terms of its impact on local capital may be less when the economy is growing.

Companies, particularly those with operations in several countries, face potential problems with government intervention policies, including minimum wage laws and wage subsidies for specific industries. In this regard, they use Hecksher-Ohlin-Samuelson and Harris-Todaro general equilibrium models to assess how government policies can affect their operations. However, these models do not adequately gauge the extent of government intervention in a country's economy. A model based upon variable returns and a permanent state of urban unemployment is recommended as a potential remedy to this problem.

Vertical integration and transaction costs for transnational corporations can be analyzed using methods developed from Coase theory. Coase emphasized the impact of transaction costs on companies' internal organizations. Asset specificities in transactions have been further analyzed by economists, Investment in assets specifically related to transactions may be carried out when a trading relationship is set up. There are a number of impacts of the organization of transnational corporations.

This paper investigates optimal trade policies for a small open economy with unemployment. When factor prices are rigid, random foreign prices result in random unemployment of resources. The ranking of second-best policies is investigated. If the marginal propensity to consume the importable is positive and non-increasing in income, the optimal composite tariff dominates the optimal target price, which in turn dominates the optimal quota.

A study was conducted to examine the nature of labor and capital mobility. The study considers sluggish factors which contribute to their movements and focuses on the situation where both are imperfectly mobile. Results show that tariff structures affect a small country's welfare only if the international trade sector sets higher prices for both variables. Under such conditions, free trade exhibits inferiority to export subsidies.

I. We wish to thank Professor Yabuuchi [2] for his comment regarding Beladi's [1] treatment of [g.sub.i] ([X.sub.i]) as exogenous. The term [g.sub.i] (X.sub.i]) captures interindustry scale economies, as can [...]

. In terms of a simple model it is shown that the growth in the export processing zone through an influx of foreign-owned capital reduces welfare for an economy importing capital-intensive goods and following a protectionary policy. Similarly, if follows that growth in the export-processing zone should benefit economies importing labour-intensive goods. Capital etranger et protectionnisme. a l'aide d'un modele simple, les auteurs montrent que la croissance dans une zone franche ou on peut retransformer et re-exporter, quand elle se fait via un influx de capital etranger, reduit le niveau de bien-etre d'un economie qui importe des biens a forte intensite de capital et a une politique protectionniste. De meme, il s'ensuit que cette sorte de croissance dans la zone franche va beneficier aux economies qui importent des biens a forte intensite de travail.

In this paper, we have analysed the factors determining the pattern of trade between underemployed economics. We find, among other things, that a low-wage, land-abundant country exports the land-using, labour-intensive product to a high-wage, capital-abundant country. We also find conditions under which a high-wage, capital-rich country may export the labour-intensive product (the Leontief Paradox).

In a recent paper (Parai and Beladi 1997; PB hereafter), we have analyzed the implications of growth and trade policies for a small open economy facing imperfect labor mobility and [...]

Presents a study which made a trade model concerned with unemployment and foreign investment to address the welfare implications of foreign capital inflows into a non-traded input sector. Results; Conclusions.

Discusses the implications of the models of unemployment in the trade theory. Assumption of general rigidity of real wages for the economy; Impact of the rise in labor supply on the unemployment rate in a small open economy; Examination of the welfare implications of trade-distorting policies in a labor-surplus economy.