We study the effects of trade barriers and the persistence of past linkages on trade flows in the former Soviet Union (FSU). Estimating a gravity equation on 1987-1996 trade among and between nine Russian regions and fourteen FSU republics, we find that Russian regions traded 60 percent more...

This paper develops a structural empirical general equilibrium model of aggregate bilateral trade with path dependence of country-pair level exporter status. Such path dependence is motivated through informational costs about serving a foreign market for first-time entry of (firms in) an export...

The large reduction in tariff rates worldwide under several rounds of the GATT is commonly credited with being one of the most notable economic policy accomplishments since World War II. However, the remarkable progress towards free trade of goods is unparalleled in trade with services where...

This paper sheds light on the role of the impact of taxes on energy production versus tariffs on imported goods for trade, energy demand, and welfare. For this, we develop a structural Eaton-Kortum type general equilibrium model of international trade which includes an energy sector. We estimate...

In the first half of the 1990s many Central and East European countries (CEECs) experienced very high growth rates of exports to OECD nations. This paper investigates the contribution of sources of comparative advantage and economic restructuring on the pattern, composition and volume of trade....

This paper discusses the potential role of a Euro-Mediterranean Agreement (EMA) in helping Middle East and North African governments implement structural economic reforms. The arguments for and against preferential liberalization are summarized, identifying a number of necessary conditions for...

The measurement of trade costs and their effects on outcome is at the heart of a large quantitative literature in international economics. The majority of the recent significant contributions on the matter assumes that trade consists of a product of exporter-time-specific factors,...

Many empirical gravity models are now based on generalized linear models (GLM), of which the Poisson pseudo-maximum likelihood estimator is a prominent example and the most-frequently used estimator. Previous literature on the performance of these estimators has primarily focussed on the role of...

Firm-level data for the Czech Republic during 1992–6 suggest that foreign investment has tended to flow to firms of above average size, initial profitability and initial labour productivity. After controlling for this selection bias, we find that foreign investment has a positive, but...

This paper investigates the relationship between firm restructuring and international competition in Bulgaria during 1991–4. Two hypotheses are tested. First, firms in industries that are subject to significant international competition demonstrate greater increases in efficiency over time...