In this paper, we analyze the trade war between two large countries when the trade policy is decided through majority … voting. We show how the trade war equilibrium depends on the median voter production factor relative endowment. We compare … this equilibrium to the one analyzed by Johnson where the trade policy is driven by an utilitarian benevolent dictator. …

The paper examines the formation of free trade agreements as a network formation game. We consider a three …-country model in which international trade occurs between economies with imperfectly competitive product markets. Labor markets can … either unionized or non-unionized), the global free trade network is both the unique pairwise stable network and the unique …

reduce the fixed cost of creating new trade linkages. Our finding hence suggests that the increasing presence of foreign …

margin of trade) by domestic firms in China. Using panel data from Chinese customs for 1997-2007, we show that domestic firms … firms for that same product-country pair. We find that foreign export spillovers are limited to ordinary trade activities …. No foreign export spillovers are found for processing trade. More, export spillovers are stronger for sophisticated …

oligopoly and trade. Firms choose capacity followed by prices. If the benefits of capacity investment in a given sector are …