The European Union is the world’s largest and deepest free trade zone. Amongst its members, ithas abolished tariffs and lowered non-tariff barriers. This has led to trade creation within Europeand to trade diversion between EU countries and outsiders. The Transatlantic Trade and Investment...

The currently negotiated Transatlantic Trade and Investment Partnership between the EU and the United States of America will most likely affect countries, such as Norway which have close ties to the European production networks. Based on a CGE model, developed at the ifo institute, we...

We employ theory-grounded sectoral gravity models to estimate the effects of various steps of European product market integration on trade flows. We embed these estimates into a static Ricardian quantitative trade model featuring 43 countries and 50 goods and services sectors. Paying attention...

Since July 2013, the EU and the United States have been negotiating a preferential tradeagreement, the Transatlantic Trade and Investment Partnership (TTIP). We use a multicountry, multi-industry Ricardian trade model with national and international inputoutput linkages to quantify its potential...

Recent literature finds that exporters are particularly vulnerable to financial market frictions.As a consequence, exports may be lower than their efficient levels. For this reason,many countries support exporters by underwriting export credit guarantees. The empiricalevidence on the effects of...

We use an augmented gravity model to revisit the effect of similarity in income distributionson bilateral trade flows. Disentangling supply-side and demand-side mechanisms,we document a robust new regularity: while differences in average incomes betweentwo countries increase trade, differences...

In theoretical trade models with variable markups and collective wage bargaining, exportexposure may reduce the exporter wage premium. We test this prediction using linkedGerman employer-employee data from 1996 to 2007. To separate the rent-sharingmechanism from assortative matching, we exploit...

Many Kyoto countries fear a loss of competitiveness due to unilateral climate policyefforts; policymakers therefore call for carbon-related border tax adjustments. With thispaper we attempt to estimate the treatment effect of Kyoto commitment on bilateralexport flows using regression-adjusted...

Using information from the UNCTAD, we construct a new balanced panel database ofbilateral international student mobility for 150 origin countries, 23 host countries, andthe years 1970-2000. We match these data with information on bilateral stocks of internationalmigrants by educational...