We develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into … advantage in trade. Countries tend to over-invest due to this strategic motive. There are thus welfare gains from coordinating …

consumers has inspired the development of a new brand of trade theory, the theory of heterogeneous firms and trade. The … framework to bring out key lessons of this recent research. We address the gains from trade, country asymmetries involving … technology potentials, market sizes, trade openness and various business conditions as well as the international repercussions …

. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their …

We introduce a simple oligopolistic trade model with international transportation costs, and analyze the profitability … trade freeness, (ii) the possibility of rent appropriation on world markets, and (iii) direct quot;synergyquot; effects of …

This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic … Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a … new quantitative spatial trade model and to use an associated technique which is extraordinarily parsimonious and tightly …

There is no empirical evidence that trade exposure per se increases child labour. As trade theory and household … economics lead us to expect, the cross-country evidence seems to indicate that trade reduces or, at worst, has no significant …

We introduce search unemployment - la Pissarides into Melitz' (2003) model of trade with heterogeneous firms. We allow … effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and raises real wages as long as … in variable trade costs or the entry of new trading countries. On the other hand, the gains from a reduction in fixed …

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 products. We provide the first large-scale, global evidence that trade …

strong though not definitive evidence of an ideological realignment in trade-exposed local labor markets that commences prior …, we find that trade exposed electoral districts simultaneously exhibit growing ideological polarization in some domains …—meaning expanding support for both strong-left and strong-right views—and pure rightward shifts in others. Specifically, trade …