We undertake a trade-growth accounting exercise by decomposing data on changes in bilateral international trade flows … into their direct (endowment accumulation, productivity growth, changes in trade costs, changing preferences) and indirect … deep drivers of trade by extending standard new trade models to include endogenous factor accumulation, R&D driven …

This paper empirically tests an augmented gravity model of international trade, using four digits disaggregated data … trade of textiles and clothing. Several model specifications were tested using Poisson Pseudo-Maximum Likelihood (PPML) with … Fixed Effects. The results show that income and income-difference between trading countries have positive effect on trade …

Recent theoretical work on international trade emphasizes the importance of trade elasticity as the fundamental …, where exporter fixed effects are regressed on proxies for technology and wages. Within the same Ricardian model of trade …, the trade share provides an alternative source of identication for the elasticity of trade. Following Santos Silva and …

In this paper, we develop a network perspective on the welfare gains from trade in today's internationally fragmented … supply chains. Towards this end, we study a Ricardian trade model featuring trade in final and intermediate products, and … introduce a novel comparative statics approach to decompose the total welfare effects of an arbitrary trade cost shock into …

-linearized. We develop the argument using one particular illustration, the gravity equation for trade, and use the proposed technique … links. Finally, bilateral trade between countries that have signed a free-trade agreement is 30 percent larger than that …

Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To … explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the … reason of growing trade in intermediate goods in the cross-section and the time-series framework. The evidence for …

This paper addresses two puzzles in international trade, namely why traditional estimates of income elasticities of …

This paper examines the impact of intra-Asia exchange rate volatility on intra-Asia trade in primary goods … underline the significant impact of exchange rate volatility on the region's production networks. For South Asia, however … economies trade relatively little with each other. …

clothing sector accounts for the largest share in trade between India and Pakistan chiefly because of the similarities in … culture and the importance of the sector in their economies. However, the level of bilateral trade in textile and clothing at … USD 722 million (2013) is dismal as compared to the trade potential of USD 2.10 billion. To make a case for increasing …

biased technical progress rather than by increasing international trade with low wage countries. However, in linking prices … for final goods with prices of primary factors, most empirical studies have only dealt with international trade in final …