-slump macroeconomic cycles. During both crises, world trade collapsed faster than world incomes and the trade decline was highly … trade costs hitting international supply chains. So far, the global economy has avoided the global trade wars and banking … collapses of the Depression perhaps due to improved policy. Even so, the global economy remains susceptible to large shocks due …

labor regulation of partners because intraindustry trade was important. The New World exported less differentiated products …

, Europe, and Oceania for the period from 1870 to 2000 and demonstrate an overriding role for declining trade costs in the pre-World … War I trade boom. In contrast, for the post-World War II trade boom we identify changes in output as the dominant force …

, however, is that there seem to be certain "threshold" levels of financial and institutional development that an economy needs …