It is common to observe that demand elasticities in trade equations for imports are implausibly large, and that they … differ between countries. Both of these present us with problems, as they imply trade will rise without bound as a proportion … trade as a proportion of GDP. We show that the inclusion of the ratios of outward and inward FDI to GDP as additional …

Trade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid … internationalization of production in the last two decades has meant that gross trade flows are increasingly unrepresentative of value … components trade is important. We also provide a simple theoretical foundation for a modified gravity equation that is suited to …

The failure of trade economists to anticipate the extreme drop in trade post Lehman Brothers bankruptcy suggests that … the behavior of trade in exceptional circumstances may still be poorly understood. This paper explores whether uncertainty … shocks have explanatory power for movements in trade. VAR estimations on United States data suggest that domestic uncertainty …

addition to its well-established relevance for the level of trade. A simple model of trade with endogenous markups shows that … demand shocks have a larger impact on trade between more distant countries. We test this implication in two steps, relying on …, linguistic, and internet). We first show that during the Great Trade Collapse of 2007-09 international transactions fell more …

investigate the factors behind the dynamics of global trade flows, with a particular view on the issue of global trade imbalances … internationalisation of production and the high import content of exports. The model can be used to gauge the effect on trade flows of …) shock to US output than to a real effective depreciation of the dollar. In addition, the model can be used to monitor trade …

This paper aims to shed light on why the downturn in global trade during the intensification of the financial crisis in … 2008Q4-2009Q1 was so severe and synchronized across the world, and also examines the subsequent recovery in global trade … expenditure can not fully capture the global trade downturn. In particular, panel estimates for a large number of OECD countries …

We empirically analyse the response of US manufacturing labour market variables to various shocks, notably to trade … factors (a sector-specific measure of trade openness, along with common technology and oil price shocks), specific measures of … manufacturing-wide variables are included for each sector. Generalised impulse responses indicate that increased trade openness …

whether the historically well-documented relationship between growth, real exchange rates and trade protectionism has broken … dataset which considers a wide range of trade policies stretching beyond the traditionally considered tariff and trade defence … measures. We find that the specter of protectionism has not been banished: Countries continue to pursue more trade …