the trade deficit. The experience during both the 1980s and 1990s demonstrates that a large and growing trade deficit need …

the trade deficit. The experience during both the 1980s and 1990s demonstrates that a large and growing trade deficit need …

Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …