We present a dynamic comparative advantage model in which moderate reductions in trade costs can generate sizable … increases in trade volumes over time. A fall in trade costs has two effects on the volume of trade. First, for given factor … endowments, it raises the degree of specialization of countries, leading to a larger volume of trade in the short run. Second, it …

We provide an analysis of the 2008-2009 trade collapse using microdata from a small open economy,Belgium. First, we … than what we observe. Trade in consumer durables and capitalgoods fell more severely than trade in other product categories … reveal strong firm- or sector-specific patterns. Overall,our results point to a demand-side explanation: the fall in trade …

of major eeconmies radically changed; the rise of the United States at the beginning and of East Asia at the end of the …

This paper studies the link between volatility, labor market flexibility, and international trade. International …