Interconnections among financial institutions create potential channels for contagionand amplification of shocks to the financial system. Contagion occurs when a shock tothe assets of a single firm causes other firms to default through the network of obligations.We say that contagion is weak if...

While the impact of globalization on income inequality has received a lot of attention, little is known about its effect on the gender wage gap (GWG).  This study argues that there is a systematic difference in the GWG between exporting firms and non-exporters.  By the virtue of being exposed...

Do better trade logistics reduce trade costs, raising a country's exports?  Yes, but the magnitude of the effect depends on country size.  Applying a new gravity model to a comprehensive logistics index, we find that an average-sized country would raise exports by about 46% after a...

We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selection into trade, while accommodating asymmetries in trade flows.  A new equation for the proportion of exporting firms takes a gravity form: the extensive margin is also affected by...

Theoretical models of growth and trade suggest that patterns of international specialisation are inherently dynamic and evolve endogenously over time. Initial comparative advantages are either reinforced or gradually unwound with the passage of time. This paper put forward an empirical framework...

This paper presents a pairwise matching model with two-sided information asymmetry to analyse the impact of information costs on endogenous network building and matching by information intermedairies. The framework innovates by examining the role of information costs on incentives for trade...

A two-sided, pair-wise matching model is developed to analyse the strategic interaction between two information intermediaries who compete in commission rates and network size, giving rise to a fragmented duopoly market structure. The model suggests that network competition between information...

Concern is growing regarding the poverty impacts of trade liberalization. The strong general equilibrium effects of trade liberalization can only be properly analysed in a CGE model. However, the aggregate nature of CGE models is not suited to detailed poverty analysis. We bridge this gap by...