The object of this paper is to study the evolution of trade costs and of the agglomeration of production, as well as … their relation. The Home Market Effect prescribes increasing agglomeration when trade costs decrease because it is supposed … to strengthen. We study the joint variation of trade costs and agglomeration in all the sectors that we consider, and …

reducing domestic trade costs for traders in developing countries and the world as a whole. We show that a relatively small … reduction in trade costs will generate trade impacts that are larger than what is likely to emerge even from a relatively … measures to reduce trade costs in developing countries - which is the objective of the trade facilitation negotiations in the …

A debate has raged in the general equilibrium literature on the impact of trade costs on portfolio home bias. In all of … through trade costs are not grounded in empirical reality. Our results enable the GE literature to move forward, but in a way …

in import prices (real trade costs) has a twofold impact on labour demand: (i) substitution of domestic employment by …