| Chapter 1 analyzes the implication of cross-country and intra-industry differences in techniques of production to explain the mystery of “missing trade.” The cross-country differences turn out to provide the direction of the bias towards “missing trade.” Nevertheless, the measured factor content of trade, considering only cross-country differences, is still quantitatively different from what is predicted by factor endowments. However, by considering intra-industry differences associated with the decomposition of differentiated and homogeneous products, those differences can explain a considerable volume of “missing trade.” The factor content of trade for differentiated products and for homogeneous products appears to be empirically compatible with the Vanek-type equation.; Chapter 2 provides a generalized framework to analyze the role of factor cost differences and transportation costs for the relationship between monopolistic advantages and the supply share of foreign firms in each mode: (a) the supply of foreign affiliates, (b) the supply via trade flows, and (c) the total supply of foreign firms. Monopolistic advantages can be critical in determining the equilibrium share of foreign firms for each supply mode. One interesting empirical implication is that there may not exist any definite relationship between monopolistic advantages and the supply share via trade flows for certain cost conditions. For those cost conditions, though, both the supply of foreign affiliates and the total supply of foreign firms can show a positive relationship with monopolistic advantages.; Chapter 3 shows that the relationship of R&D activities with productivity fluctuations has differences in the pattern of timing between domestic and foreign R&D activities. The relationship between domestic productivity and foreign R&D activities depends on the length of time lag with a single-peaked time-dependent feature, whereas the domestic productivity impact of domestic R&D activities does not show this pattern. Additionally, foreign R&D activities are relatively more important in the impact on domestic productivity for “non-frontier” countries. And the contribution of foreign R&D activities to domestic productivity has become strengthened over time, but with a limited scope in terms of diffusion timing. |
