This paper examines the impact of major disasters on import and export flows using a gravity model (170 countries, 1962-2004). As a conservative estimate, an additional disaster reduces imports on average by 0.2% and exports by 0.1%. Despite the apparent persistence of bilateral trade volumes,...

It is a common perception that a government, especially in the face of elections, is particularly sensitive to the presence of trade-induced unemployment. In this paper, I ask: how much weight does the incumbent politician actually attach to unemployment resulting from trade? To answer, I build...

This paper analyzes the effects of international transfers to finance infrastructure on net migration flows among countries within the EU. A new economic geography model is employed with common pool financed infrastructure investments to derive a set of empirically testable hypotheses about the...

Trade patterns in new trade theory models and agglomeration patterns in new economic geography models crucially depend on the effect that a higher local demand leads to a larger share of production of these products, namely the home market effect. Multinationals can exploit higher foreign demand...