We study the impact of transnational terrorism diffusion on security and trade. We set a simple theoretical model predicting that the closer a country to a source of terrorism, the higher the negative spillovers on its trade. The idea is that security measures, which impede trade, are directed...

The World Trade Center attack has shed light on the urgent need to implement preventing measures against terrorism and to enhance cooperation in the global security system for all countries. However, international coordination cannot be taken for granted. It is often ineffective and likely to...

This paper studies the effect of oil prices on the geography of international trade. We model transport costs as a function of variable and fixed costs. By affecting the first cost component,oil prices can then modify the structure of transportation costs across partners. This, we argue, acts as...

The purpose of this paper is to provide a theoretical and empirical background overview of the interactions between aid and foreign direct investment (FDI) policies, and trade flows and policies, taking the perspective of outcomes from the point of view of the recipient developing country. A...