Cultural differences play an important role in shaping migration patterns. The conventional proxies for cross country cultural differences - such as common language, ethnicity, genetic traits or religion - implicitly assume that cultural proximity between two countries is constant over time and...

How does international trade affect the popularity of governments and leaders? The recent backlash against globalization renders this question extremely topical. Yet, most previous work has looked for political effects of aggregate trade flows without decomposing into particular types of...

Are the labor market changes from exports specific to exporting industries, or do they dissipate throughout the economy? To analyze this question, we study the case of Vietnam. Vietnam exported a total of $356B, making it the number 18 exporter in the world in 2021. Recent studies show provinces...

We study the dynamic effects of export exposure over local labor markets in Indonesia. We develop an empirical strategy to instrument exposure to exports using exposure to foreign demand shocks and validate it showing that the labor market responses are consistent with those expected from demand...

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility gains from price decreases of equal magnitude. Price...

This paper examines the welfare loss of import restrictions on bananas in Australia and whether the import restrictions have turned into a particular form of export promotion. We set up a model in which there is free domestic entry, with banana producers accepting losses in normal years, off-set...