Constructing a two-good (competitive and imperfectly-competitive goods), two-primary factor (capital and labor) and two-country model of international trade where the imperfectly-competitive sector is subject to increasing returns to scale, we establish an oligopolistic version of the...

Is there evidence from China's pre-WTO accession period that newly imposed U.S. or EU import restrictions deflect Chinese exports to third markets? We examine this question by drawing on a newly constructed data set of U.S. and EU product-level import restrictions on Chinese trade imposed...

The simple gravity equation explains a great deal about the data on bilateral trade flows and is consistent with several theoretical models of trade. We argue that alternative theories nevertheless predict subtle differences in key parameter values, depending on whether goods are homogeneous or...

This paper analyzes whether complexity, measured by the number of skilled tasks that are performed in production, explains countries commodity trade structure. We modify the Romalis (<link/>) model to incorporate advantage differences in complexity across commodities together with differences in the...

We analyse a very rich and unique panel database that provides information on exports at the firm-product level. Motivated by the recent theory of multi-product firms, we investigate what determines the survival of products in the export mix to find that, in export dynamics, characteristics of...

In this paper the structure of intra-firm trade within the context of transfer price manipulation by a multinational firm is endogenized. "High" and "low" values of host-country tax rates give rise to intra-firm trade in final goods and intermediate inputs, and "intermediate" values of the tax...

In this paper the effect of voluntary imports expansions (VIEs) on welfare in a dynamic game is analysed. It is found that (1) there exists a Markov perfect Nash equilibrium (MPNE) and a unique stable steady state; (2) with habit formation in consumption, the welfare and output for each firm are...

This study develops a model of trade that highlights the effects of the interconnection of country-specific communications networks as a driving force behind trade in high-tech products with positive transport costs. By constructing a two-country model of monopolistic competition with two...

This paper shows that the issues in the recent discussion over the `home-market effects' are more complicated than previously thought. It is shown that, in general, market size matters for industrial structure even when both the homogeneous and the differentiated goods face transport costs. The...

A modern adaptation of the Ricardian model is used, which incorporates monopolistic competition and multiple factors to derive a MacDougall-type relation between a country's international competitiveness at the industry level and its productivity performance. This relation is implemented...