and entry decisions in the context of international trade. When market entry costs are sunk, policy uncertainty can create … dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is … uncertain, and (ii) preferential trade agreements (PTAs) are valuable to exporters even if applied trade barriers are currently …

Developing countries now account for a significant fraction of both world trade and two thirds of the membership of the … World Trade Organization (WTO). However, many are still individually small and thus have a limited ability to bilaterally … extract and enforce trade concessions from larger developed economies even though as a group they would be able to do so. We …

greater exposure to the United States through trade and financial channels, less transparent holdings of dollar assets, and … the United States through either trade linkages or asset exposure. We obtain weaker results for differences in asset …

With the signing of the North American Free Trade Agreement (NAFTA) in 1994, Mexico entered a bilateral free trade …

investment or trade channel depending on the openness of the economies. While a higher degree of exchange rate stability could …

econometric difficulties are similar to those that bedevil the literature on trade openness and growth, though if anything, they … economic growth, and a growing financial sector in an economy open to trade cannot long be insulated from cross …. The reforms developing countries need to institute to make their economies safe for international asset trade are the same …

-quality production therefore limit the positive impact that trade liberalization can have on income or growth. Institutional reform that … reduces the costs of entry into high-quality production and trade reform therefore have synergistic effects on income and … targeted at small businesses) interferes with the impact of trade reform. The model that yields these results is also used to …