Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize their gains from trade equation. Our formula permits easy …

agriculture is driven by comparative advantage and non-homothetic preferences. Countries are integrated through trade but trade is … better fit to cross-sectional data on manufacturing shares than frameworks which ignore the role of trade costs or non … lowering of trade barriers. …

Quantitative results from a large class of international trade models depend critically on the elasticity of trade with … respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate … price and trade-flow data using the Ricardian model. We motivate our estimator by proving that the estimator developed in …

–horizontal versus vertical– within the European Union and the relevance of trade integration as a potential determinant of … investment flows over the period 1995-2009. We capture trade integration by estimating the magnitude and evolution of the home … robust relationship of complementarity between trade integration and FDI provides at least one argument in support of …

This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in …

This paper reviews the most significant recent developments in the theory of trade agreements. The paper offers an … integrated approach to evaluating trade agreements, and uses the approach to present results on preferential and multilateral … trade agreements. The paper identifies also several questions for further research. …

customs unions. This paper develops a political economy model of trade policy under imperfect competition to provide a …The number of preferential trade agreements has greatly increased over the past two decades, yet most existing … bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged …

systematic bias implies that the ability of HOV to explain North-South factor trade depends both on relative factor abundance and …

We exploit Japan’s 19th century move from autarky to free trade to provide the first test of the general validity of … a single refutable prediction on the economy’s factor content of trade. Our test combines factor price data from Japan …’s late autarky period with Japan’s factor content of trade calculated with the technologies of the country of origin of …