) bilateral trade openness reduces bilateral cultural distance; (ii) the more differentiated the products, the more trade reduces … cultural distance; (iii) trade openness has a lock-in effect on culture. Third, we test the model using an instrumental … bilateral trade openness translates into a 43% standard deviation decrease in bilateral cultural distance. …

inefficiency and stresses a need for institutional adjustments. We show that cooperation by water trade and the introduction of …

the period 1975-2005. In particular, it tests a) whether increases in trade lead to rising inequalities, b) whether these … inequalities recede in time, and c) whether increases in global trade affect the developed and developing worlds differently. Using … static and dynamic panel data analysis, it is found that while increases in trade per se do not lead to greater territorial …

-driven and the decision to serve foreign countries via exports or FDI depends on a proximity-concentration trade-off. We … characterize the joint patterns of trade and FDI when countries differ in income distribution and size and show that FDI is more …

middle educated workers. Trade openness is also associated with polarization, but this is not robust to controls for …

We analyze the interaction of economic and political determinants of free trade agreements (FTA). In addition to … standard trade gains, FTAs can promote peaceful relations by offering a political forum and by increasing the opportunity cost … of conflicts that disrupt trade. If policy makers believe in such pacifying effects of FTAs, country-pairs with large …

labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and …

We study a two-country two-sector model of international trade in which one sector produces homogeneous products while … vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in … shaping welfare, trade flows, productivity, and unemployment. We show that both countries gain from trade but that the …