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This paper contributes to two strands of literature on empirical models of trade flows and trade policy. The first and the older strand is that of gravity models of bilateral trade flows going back to Hans Linneman (1966) and Tinbergen (1962) and its recent applications, particularly by Adams et...
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economy has become highly integrated, and foreign outsourcing has become a standard practice for firms. While trade theory …
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are accounted for, and; the estimation of benefits is consistent with the welfare economics underpinnings of cost benefit …
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