We build and estimate a structural dynamic general equilibrium model of growth and trade. Trade affects growth through …, growth affects trade, directly through changes in country size and indirectly through altering the incidence of trade costs …. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …

We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall …. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize …. We show analytically that an analysis based on iceberg costs necessarily underestimates the welfare gains from trade …

We develop a dynamic multi-country trade model with foreign direct investment (FDI) in the form of non-rival technology … capital. The model nests structural gravity subsystems for FDI and trade, with accumulation/decumulation of phyisical and … to 9% of world's welfare and to 11% of world's trade, unevenly distributed among winners and losers. Net exports of FDI …

We propose new methods to identify the full impact of country-specific characteristics on bilateral trade flows within … the framework of ‘the new quantitative trade model.' We complement theory with a simple two-stage estimating procedure …, and offer a proof of concept by quantifying the impact of country-specific R&D expenditure on trade. Results suggest a …

This paper analyses the effect of international borders and of trade agreements at international borders on subnational … 1950 and 2017. Our results show that international borders decrease regional income per capita, while trade agreements at … international borders increase regional income per capita by about the same magnitude. The positive marginal effect of trade …

Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks … quantitative trade framework which explicitly models labor market frictions. To illustrate, we assess the effects of trade and … labor market reforms for 28 OECD countries. Welfare effects of trade agreements are magnified when accounting for employment …

We propose and apply methods to quantify the impact of national institutions on international trade and development. We … are able to identify the direct impact of country-specific institutions on international trade within the structural … offers robust evidence that stronger institutions promote trade. A counterfactual analysis reveals that the changes in …

We propose and apply methods to quantify the impact of national institutions on international trade and development. We … are able to identify the direct impact of country-specific institutions on international trade within the structural … offers robust evidence that stronger institutions promote trade. A counterfactual analysis reveals that the changes in …