. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral …This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market … frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets …

In the face of trade liberalization domestic firms are often forced out of the market, whereas others adapt and survive … goods production. We exploit variation in EU trade policy to show that lower manufacturing tariffs cause firms to shift into …

. Consequently, trade does not always increase firm-level aggregate productivity as negative shocks on the home market can be … exporting. Despite this, trade can still improve welfare for risk-averse consumers by reducing aggregate price fluctuations. …

trade, and the relative price of manufacturing goods. More than 70% of the variation in per capita income can be explained …

the quality of the match between job and worker, trade liberalization may lead to industrial agglomeration and inter …-industry trade. The agglomeration force is the improvement in the quality of matches when firms recruit from a bigger pool of labor …. The forces against agglomeration are the existence of trade costs and monopoly power in the labor market. We show that …

This paper presents a model of international trade that features heterogeneous firms, relativeendowment differences … across countries, and consumer taste for variety. The paper demonstrates thatfirm reactions to trade liberalization generate … wide range of firmlevelreactions to falling trade costs, the model also shows that, as trade costs fall, firms …

trade policy literature: first, what is the purpose of trade negotiations? And second, what is the role played by the … fundamental GATT/WTO principles of reciprocity and nondiscrimination? Relative to the standard terms-of-trade theory of GATT …/WTO negotiations, my theory makes two main contributions: first, it builds on a 'new trade' model rather than the neoclassical trade …