This paper sets up a model of trade, in which two countries with differing levels of technology specialize in the … scope for a deep trade agreement that conditions tariff reductions on institutional quality improvements and is beneficial …

While traditional empirical models using determinants like size and trade costs are able to predict RTA formation …

We study how a preferential trade agreement (PTA) affects international sourcing decisions, aggregate productivity and … agreement incorporates “deep integration” provisions, it boosts trade flows, but not necessarily welfare. Rather, “deep …

form Preferential Trade Agreements (PTAs). Our model indicates that countries should set systematically lower preferential … margins when the bloc takes the form of a free trade area (where members set external trade policies independently), relative … trade areas) preferential margins should increase with the supply of partner countries and decrease with the level of …

This paper studies the effect of regional trade agreements on firms’ exports. Using detailed information on the content … of trade agreements and firm-level exports for 31 developing countries between 2000 and 2020, the analysis shows that the … depth of trade agreements matters for the export performance of firms. Moving from shallow to deep trade agreements boosts …

We quantify the relationships between deep trade liberalization and foreign direct investment (FDI). To this end, we … focus on the effects of Deep Trade Agreements (DTAs), and we rely on a structural framework that simultaneously enables us … effects on FDI; and (iii) obtain partial DTA effects on trade and quantify the impact of DTAs on FDI through trade. We obtain …

Mainstream economic wisdom favoring cooperative free trade is challenged by a wave of disruptive trade policies. In …

This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the … gravity models are estimated using a dataset of unbalanced panel data that combines bilateral trade flows among 29 countries … and the distribution of outward FDI stocks among these countries. The results reveal a complementarity between trade and …

In light of the recent tit-for-tat trade dispute between China and the US, interest in quantifying the effects of the … so-called phase one agreement has risen. To this end, the paper quantifies the impact of the asymmetric managed trade … for China and the US, trade diversion effects are also analyzed. The model-based analysis finds noticeable positive …

products exported under processing trade, and for capital goods. We also find that deaths and lockdowns in previous months tend … to increase current imports from China, partially offsetting the contemporaneous trade loss, suggesting that trade is not …