We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard … trade liberalization. While the former leads to more dispersion of economic activity across space, the latter tends to drive …

Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels … spending on inputs is affected by trade costs. However, in cross-country data, there is no such positive correlation between … is implicitly assumed in the usual formulation of aggregate CES production functions. Whether trade liberalization …

The paper reviews recent literature on the economics of migration and diasporas, focusing on economic gains and …

Migrants shape market access: first, they reduce international trade frictions and second, they change the geographical … exports and imports to immigrant population and quantifies these effects in a model of inter- and intra-national trade and … migration calibrated to US states and foreign countries. Reducing US migrant population shares back to 1980s levels increases …

We develop a two-country, two-sector model with a continuum of workers to address the link between migration and trade … more likely to be supported by a simultaneous referendum on trade and migration than in one on trade alone? The key to our … analysis is the recognition that for free trade, migration, or trade and migration to be adopted, the relevant policy must pass …

We develop a model of international trade between two symmetric countries that features inter-group inequality between … this framework international trade leads to a self-selection of the best firms into export status, and aggregate welfare … increases if this selection effect is sufficiently strong. Gains from trade are accompanied by larger inequality along multiple …

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms … by trade costs and country size: smaller and/or more centrally located nations suffer less from inefficient policies at …

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two … effects of trade liberalization. We show that the gains from trade will be distributed very unequally. While unskilled workers … when a skill-abundant country opens up to trade. …