, explains countries commodity trade structure. We modify the Romalis (<link/>) model to incorporate advantage differences in … countries in world trade increases with products complexity. Empirical tests confirm this prediction. Moreover, we find that … complexity complements the explanation provided by skillintensity on countries commodity trade structure. …

Contrary to the prevailing interpretation, this paper shows that the central models of trade with heterogeneous firms … (value-added per employee). Given the presence of fixed export costs or heterogeneous mark-ups and trade costs, the …

In this paper, we offer an explanation why globalization (falling trade costs) may increase the government incentive to … promotes domestic champions provided that barriers to trade are low. …

concerned about being held up. Instead, the vertical structure is determined by the trade-off between economies of scale in …

Large distance and border effects on trade flows in some industries may result from the collusive division of … control for trade costs, which - despite their importance - cannot account for the observed segmentation of local markets at …

production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style …

Recent trade models with heterogeneous firms have changed the interpretation of gravity equations. Chaney (2008) shows … predictions. Our industry parameters allow us to evaluate separately the effect of transport costs and tariffs on trade, without … having to resort to detailed data on trade frictions. …

bilateral trade flows. We use a framework that allows for goods trade and capital mobility and show that labour market …), respectively. In the short run, a higher degree of labour market rigidity decreases the value of total trade, but increases the … share of intra-industry trade for a country that is larger than its trading partner. The reverse effects are observed when …