Quantitative results from a large class of international trade models depend critically on the elasticity of trade with … respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate … price and trade-flow data using the Ricardian model. We motivate our estimator by proving that the estimator developed in …

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize their gains from trade equation. Our formula permits easy …

We undertake a trade-growth accounting exercise by decomposing data on changes in bilateral international trade flows … into their direct (endowment accumulation, productivity growth, changes in trade costs, changing preferences) and indirect … deep drivers of trade by extending standard new trade models to include endogenous factor accumulation, R&D driven …

The number of preferential trade agreements has greatly increased over the past two decades, yet most existing … bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged … customs unions. This paper develops a political economy model of trade policy under imperfect competition to provide a …

This paper reviews the most significant recent developments in the theory of trade agreements. The paper offers an … integrated approach to evaluating trade agreements, and uses the approach to present results on preferential and multilateral … trade agreements. The paper identifies also several questions for further research …

systematic bias implies that the ability of HOV to explain North-South factor trade depends both on relative factor abundance and …

This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in …

This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in …

This paper reviews the most significant recent developments in the theory of trade agreements. The paper offers an … integrated approach to evaluating trade agreements, and uses the approach to present results on preferential and multilateral … trade agreements. The paper identifies also several questions for further research. …

The number of preferential trade agreements has greatly increased over the past two decades, yet most existing … bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged … customs unions. This paper develops a political economy model of trade policy under imperfect competition to provide a …