One criticism of the gravity model of international trade is that it takes no account of comparative advantage. This critique is particularly important when the gravity model is considered for policy applications such as identifying priority markets for trade promotion programs. For example, the...

The literature on the impact of bilateral investment treaties (BITs) on foreign direct investment (FDI) has had difficulty establishing a robust effect of BITs on FDI flows. This conclusion extends to FDI chapters in free trade agreements (FTAs), which feature the same substantive content as...

For China, the last quarter century has marked the start of a new chapter in its history as it moved back from the margins of history toward centre stage, with global impacts from its soaring trade flows, foreign direct investment inflows, and the centrality of the yuan to developments in...

Canada's trade diversification drive confronts daunting challenges given that economic geography places it deep in the gravity well of the United States while its main diversification opportunities require partnership with the US' chief geostrategic rival, China. In this note, I sketch out how...

This study assesses the potential for enhancement post-Brexit of the UK's non-EU trading relationships by comparing actual levels of UK exports to predicted levels based on gravity model analysis, including by taking into account factors such as similarity/dissimilarity of comparative advantage,...

China’s WTO accession was a landmark event bringing one of the world’s major trading economies fully into the international rules-based system. The major features and implications of China’s accession agreement are reviewed and, given China’s success in trade and investment outside the...

The accelerated expansion of China’s trade and current account surpluses since 2004, and the associated expansion of China’s foreign exchange reserves in the context of very rapid investment-driven domestic economic growth and adverse movements in China’s terms of trade have led China’s...

The computable general equilibrium model has become the workhorse tool for assessing the impacts of bilateral trade liberalization. This paper draws on recent experience within Foreign Affairs and International Trade Canada in modeling the impacts of potential free trade agreements with various...

Are exports systematically associated with diplomatic representation abroad? Given the expenses of maintaining posts abroad, this question is obviously of deep interest to governments seeking to promote their country's export performance while coping with budgetary pressures. In a recent...