Estimating the effect of trade on capital flows is difficult given the inherent identification problem. We use fluctuations in rainfall to capture the exogenous variation in trade between Germany, France, the U.K., and the Ottoman Empire during 1859-1913. The provisionistic policy of the Ottoman...

We develop a new analytical framework for both cross-border services trade and services trade through foreign affiliates, based on heterogeneous firms operating under oligopoly. This leads to direct predictions about choice of services delivery (mode of delivery) at the firm level, and about the...

Working with a panel dataset of of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the service sectors. We first develop a consistent analytical framework for the application of the gravity model jointly to services trade and commercial...

We investigate how the export performance of firms in China is influenced by credit constraints. Using panel data from Chinese customs for 1997-2007, we show that credit constraints restrict international trade flows and affect the sectoral composition of firms’ activity. We confirm that...

The financial crisis of 2008-09 has cast palpable doubt on the relevance of the current legal framework governing trade in services for financial crisis prevention and management. The crisis revealed the limited utility and effectiveness of services trade law in dealing adequately with the...

Trade regulation may never have been in more flux than it is now. Other than the emergence of ‘megaregionals' (such as the Transatlantic Trade and Investment Partnership-TTIP or the Trans-pacific Partnership-TPP) and the difficulties in finalizing the Doha Development Agenda, increased...

The mushrooming of Special Economic Zones (SEZs) in recent years has led to a significant increase in the supply of attractive incentives for investors looking for opportunities abroad. SEZs are self-contained regimes, inextricably associated with investment promotion policies and domestic...

Foreign exchange reserve accumulation has risen dramatically in recent years. The introduction of the euro, greater liquidity in other major currencies, and the rising current account deficits and external debt of the United States have increased the pressure on central banks to diversify away...

The General Agreement on Trade in Services (GATS) has been at the epicenter of public discussions due to its possibly adverse effects on the domestic regulation of public services. While the GATS has an admittedly broad scope, its ‘bite’ largely depends on commitments undertaken by WTO...

One topic has featured in discussions of bribery of foreign public officials over the last few years – the rise of the broad extraterritorial use of national anti-bribery laws (based on the OECD Anti-Bribery Convention) which might reach domestic or foreign companies anywhere in the world. The...