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We develop a general-equilibrium model of endogenous innovation and foreign direct investment (FDI). In the benchmark model, Northern firms innovate with the help of localized spillovers and a share of new products is transferred to Southern production via FDI. An increase in Southern imitation risk reduces this share. In the extended model we permit higher-cost Southern innovation, which yields inefficient specialization in both regions and reduces global growth. However, it generates a U-shaped relationship between FDI and local imitation. We also allow for "reverse" spillovers in knowledge to Northern innovation, which partially restore global efficiency and growth.

The 1,2 past four decades we have witnessed China's increasingly active participation in United Nations Peacekeeping Operations (PKOs). The existing literature on this issue has an obvious feature: many writers have focused on policy analysis or review (Stahle 2008; Gill and Huang 2009; International Crisis Group 2009; Lanteigne 2014). According to those analysts, China's active participation in PKOs is largely driven by a long list of pragmatic needs or interests ranging from belief in multilateralism and image building to more traditional concerns such as isolating separatist forces in Taiwan and securing its overseas investments (Gill and Huang 2009). Hence, it has been very difficult for different writers to agree on the core reason behind China's changing attitude towards UN peacekeeping. Some writers have applied theoretical analysis to their

Although it is an important building block of regional integration, very little research has investigated border trade between neighboring countries. This paper fills this gap by examining the patterns and determinants of China's border trade with its neighboring countries. First, a disaggregated, firm‐product level trade data is used to provide a detailed overview of border trade growth and dynamics. The paper shows that trade liberalization has significantly encouraged new firms to enter the export market, and new private firms account for the majority of the expansion in border exports and the shift toward more sophisticated products. Second, a gravity model is used to investigate the determinants of border trade. The results suggest that multilateral and regional integration, market size and institutional quality play important roles in promoting border trade.

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