We construct a game theoretic model of an oligarchic economy that potentially could be targeted by smart international sanctions. Oligarchs in this economy provide support for their leader, a strong man and potentially an autocrat, in return for favors that results in having income higher than...

We revisit the effect of trade openness on environmental quality by utilizing data on the air visibility of 134 countries during 1961–2004. We find a significantly negative impact of trade openness on air quality, not only for developing economies, but also for developed ones. This finding is...

This paper proposes an empirical analysis to provide new insight into the trade diversion effects of antidumping (AD) policy. Trade diversion is the shift in trade from named countries in an AD investigation to non-named countries. Previous studies have concluded that AD action causes a...

I show that very complex inventions stay outside the patent system more often than medium-complexity products. I test this hypothesis using a subset of international patents data. The regressions confirm that patents and technological complexity have an inverted-U shape relation.

We investigate whether global value chains have increased the sensitivity of Chinese trade to foreign income shocks. This may occur through either composition or supply chain effects. We find evidence for the former, but not the latter.

This note studies exchange rate pass-through to the prices of domestically produced goods, exploring the firm-level pricing survey conducted by the Bank of Korea. The data reveal the imported inputs channel of, as well as nonlinear and asymmetric, exchange rate-pass-through.

A two-period duopoly model of trade with habit formation displays a “pre-entry pro-competitive effect” and the standard pro-competitive effect once trade is effective. Both effects are driven in a different way by transport cost. A trade liberalization affects ambiguously welfare.

When materials offshoring is measured by estimating imported intermediate inputs, a common assumption used is that an industry’s imports of each input, relative to its total demand, is the same as the economy-wide imports relative to total demand: this is the so-called “import...

What are the gains from international trade? And how do immigrants influence this process? We consider the case of Canada, document its experience with import variety growth in the period from 1988 to 2007, and relate this variety growth to the process of immigration. We find that import...

We compute the tradable and non-tradable input shares for consumption and investment from the latest release of OECD input–output tables. We document that input shares (the content of tradable and non-tradable goods per unit of final demand) differ substantially from final demand shares (the...