We study the impact of transnational terrorism diffusion on security and trade. We set a simple theoretical model … predicting that the closer a country to a source of terrorism, the higher the negative spillovers on its trade. The idea is that … security measures, which impede trade, are directed both against the source country of terror and its neighbor countries where …

Recent trade models with heterogenous firms have considerable consequences on the interpretation of gravity equations …. Chaney (2008) shows that the effect of distance on trade margins incorporates three parameters: the elasticity of … substitution between goods, the elasticity of trade costs with respect to distance, and the degree of firm heterogeneity. We …

Recent findings in international trade using detailed firm level surveys emphasize the microeconomic effects of trade … liberalization episodes. A unilateral trade reform has two opposite effects on firms’ export patterns: (i) expansion of export … market. The main contribution of this paper is to investigate this trade-off between market access growth and tougher …

This paper uses micro-data on balance sheets, trade, and the nationality of ownership of firms in France to investigate … a tiny fraction of all firms, are responsible for a high share of employment, value added, and trade both at the … location and their country of ownership. We find that intra-firm trade in intermediate inputs is a significant channel of …