During the last two decades new research has greatly advanced our understanding of the structure of world trade. This … foreign trade the discussion is in two parts. One part examines the links between factor endowments and trade flows. New … across countries. A second part examines determinants of the volume of trade, the share of intra-industry trade and evidence …

We develop a simple model of international trade with heterogeneous firms that is consistent with a number of stylized … features of the data. In particular, the model predicts positive as well as zero trade flows across pairs of countries, and it … allows the number of exporting firms to vary across destination countries. As a result, the impact of trade frictions on …

We present a North-South model of international trade in which differentiated products are developed in the North … relative prevalence of these organizational forms. The analysis sheds light on the structure of foreign trade within and across …

-driven and the decision to serve foreign countries via exports or FDI depends on a proximity-concentration trade-off. We … characterize the joint patterns of trade and FDI when countries differ in income distribution and size and show that FDI is more …

labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and …

We study a two-country two-sector model of international trade in which one sector produces homogeneous products while … vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in … shaping welfare, trade flows, productivity, and unemployment. We show that both countries gain from trade but that the …

This Economica Coase Lecture reviews research that has revolutionized the field of international trade and foreign …

frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets …. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral … country's trade partner. Unemployment benefits can alleviate the distortions in a country's labor market in some cases but not …