INTERNATIONAL ECONOMIC INTEGRATION & DOMESTIC PERFORMANCE

International Economic Integration and Domestic Performance brings together the essays of Mary E Lovely focused on the relationship between international economic integration and domestic performance. It is a collection of sole-authored and co-authored papers that have been published in various scholarly journals over the last two decades. The first section considers the welfare effects and optimal design of retail sales taxes when consumers can avoid taxation by crossing jurisdictional boundaries. The second section highlights the role of scale economies in the design of industrial policies and as a determinant of firm location. The third section explores the influence of environmental policy on foreign investor's location decisions and the role of trade and technology on country's environmental regulation. The final section considers the determinants of wage differences, the attraction of low wages for foreign investors, and misallocations of labor in an emerging economy — China.

The collection, taken as a whole, highlights the power of international factor mobility to determine domestic tax burdens, to influence welfare implications of domestic policy alternatives, and to influence the location of productive factors and their rewards.

• Sales Taxation and Cross-border Evasion:
  • Optimal Commodity Taxation with Costly Noncompliance
  • Crossing the Border: Does Commodity Tax Evasion Reduce Welfare and Can Enforcement Improve It?
• Scale Economies, Policy, Firm Location, and Trade Patterns:
  • Playing by the New Subsidy Rules: Capital Subsidies as Substitutes for Sectoral Subsidies
  • Technological Linkages, Market Structure, and Production Policies
  • Scale Economies, Returns to Variety, and the Productivity of Public Infrastructure (with Douglas Holtz-Eakin)
  • Information, Agglomeration, and the Headquarters of US Exporters (with Stuart S Rosenthal and Shalini Sharma)
  • Decomposing China–Japan–US Trade: Vertical Specialization, Ownership, and Organizational Form (with Judith M Dean and Jesse Mora)
  • The Home Market Effect and Bilateral Trade Patterns: A Reexamination of the Evidence (with Cong S Pham and Devashish Mitra)
• Environmental Policy in the Open Economy:
  • Are Foreign Investors Attracted to Weak Environmental Regulations? Evaluating the Evidence from China (with Judith M Dean and Hua Wang)
  • Trade, Technology, and the Environment: Does Access to Technology Promote Environmental Regulation? (with David Popp)
• International Economic Integration and Wages:
  • The Location Decisions of Foreign Investors in China: Untangling the Effect of Wages Using a Control Function Approach (with Xuepeng Liu and Jan Ondrich)
  • Does Final Market Demand Elasticity Influence the Location of Export Processing? Evidence from Multinational Decisions in China (with Xuepeng Liu and Jan Ondrich)
  • Labor Allocation in China: Implicit Taxation of the Heterogeneous Non-State Sector (with Fariha Kamal)
  • Does Deeper Integration Enhance Spatial Advantages? Market Access and Wage Growth in China (with Fariha Kamal and Puman Ouyang)