Tying trade flows: a theory of countertrade with evidence

Article Abstract:

Countertrade has oftentimes been criticized for serving as a form of bilateralism and reciprocity, thereby an inefficient approach to international exchange. To counter this argument, a study was conducted involving 230 countertrade contracts. It is proven that tying an export to an import may, in certain situations, minimize transaction costs and result in improved efficiency. Results reveal that countertrade can be used to deal with contractual problems arising from technology trade and imperfect capital markets.

Countertrade

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National borders matter: Canada-U.S. regional trade patterns

Article Abstract:

The determinants of Canada-US trade patterns were examined using gravity-type equations. Canada-US trade was chosen because the two countries share a similar culture, language and institutions. Trade data was also subject to a sensitivity analysis for the year 1988, the year the Canada-US Free Trade Agreement (FTA) was signed. Despite the signing of the FTA, it was concluded that national borders will still continue to have significant effects on continental trade patterns.

United States, Canada

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On the role of bank competition for corporate finance and corporate control in transition economies

Article Abstract:

Banks have a key role to play in monitoring and financing companies in economies in Eastern Europe. Bank competition affects the profits of banks, but it does not necessarily lessen the screening incentives of the bank, contray to expectations. Increased competition between banks can also have a beneficial effect on the restructuring incentives of companies, since they hope to retain an increased proportion of the surplus that is to be generated.

Commercial Banks, Commercial Banking, Banking industry, Eastern Europe

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