Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …

We empirically investigate the responsiveness of international trade to the stringency of environmental regulation … equilibrium model of trade and pollution nesting the pollution haven motive for trade with the factor endowment motive. We analyze … show that trade patterns in ‘dirty’ commodities are jointly determined by relative factor endowments and environmental …

This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of … cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 … countries in 1999, we find that institutional distance has a negative effect on bilateral trade, presumably because the …

that trade, through the fostering offinancial market integration,may yield important long-run effects related to …

We examine interaction between trade in goods and market power in domestic trade and distribution, developing a model … that highlights this interaction. Theory points to an expected linkage between service sector competition and goods trade … direct impact of tariffs on trade flows. …