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We extend the model of Nishimura and Shimomura (2002) to consider a two-country framework where under autarky indeterminacy arises in one country but determinacy in the other, and show that indeterminacy could be eliminated when trade takes place between the two. [ABSTRACT FROM AUTHOR]

Abstract: This paper extends the IS–LM–EE framework first formulated by Heyes (Heyes, A., 2000. A proposal for the greening of textbook macro: ‘IS–LM–EE’. Ecol. Econ. 32, 1–7). In his model, exogenous fiscal or monetary shocks are needed so that the intersection of all three schedules is reached. Such independent adjustments are circumvented in this paper, which argues that a naturally adjusting process exists and formalizes this mechanism for the IS–LM–EE framework. [Copyright &y& Elsevier]

This study theoretically examines the factors required by a small-open economy to move up the value-chain. To carry out the study, a framework of production sharing involving a large developed country and a less developed small-open economy is used. Service bundles are modelled as inputs for coordinating the manufacturing activities located across the countries. It is found that the small-open economy can move up the value-chain when the size of its skilled labour force increases and the production cost of its service bundles decreases. [ABSTRACT FROM AUTHOR]

This paper presents a simple two-sector two-factor model with endogenously determined industrial composition. It is shown that by shrinking the cone of diversification, service liberalization may enable the economy to switch from equilibrium where both traditional and modern goods are produced to another where specialization in the modern good takes place. [ABSTRACT FROM AUTHOR]