Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …

How much does a nation spend on resources to 'grease the wheels of trade'? To examine this question the Dutch economy … seventeenth century from successes in long distance trade, shipping and financial innovations. Despite its historical background … remain important, suggesting that face-to-face trade remains an important element of modern transactions. In contrast to the …

of trade. Regression results suggest that import protection makes income distribution worse for countries in labor …

This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of … cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 … countries in 1999, we find that institutional distance has a negative effect on bilateral trade, presumably because the …