substitutes and trade costs are sufficiently high, a marginal reduction in trade costs facilitates collusion. Exactly the opposite … is true if, for any given degree of product substitutability, trade costs are sufficiently low. We also study the …

rapidly since the 1960s. I argue that declining trade costs are an important explanation for these facts. I present a three … model, falling trade costs explain much of the observed growth in overall and VS trade. Manufacturing trade grows twice as … fast as overall trade. Raw materials trade was more important in the 1960s when trade costs were high, since their …

exporter specific product bundles, i.e. the elasticity of trade flows to trade costs, can explain an increase in the distance … the distance coefficient is compatible with a reduction in the elasticity of trade costs to distance …

remaining trade costs at entry to these markets. …

focusing on two sources of goods market segmentation — (i) international trade costs, and (ii) non-traded input costs of …

determined by country characteristics, such as similarity in market size and factor differentials, but also trade costs as well …