is discouraged when trade costs fall. This seems to conflict with the experience of the 1990s, when trade liberalisation … and technological change led to dramatic reductions in trade costs yet FDI grew much faster than trade. Two possible … resolutions to this paradox are explored. First, horizontal FDI in trading blocs is encouraged by intra-bloc trade liberalisation …

international trade economists. There are a number of quantitative trade models with micro-foundations which emphasize demand … intensive margin (Chaney 2008), etc, and conclude that trade liberalization with tariff reductions leads an economy to reach a … inducing gravity equations share the common assumption, a perfect labor market. Quantitative trade models with full …

I employ search-and-matching to a multi-country and multi-sector Ricardian model with input-output linkages, trade in … goods to trading partners, and interact with bilateral trade share, price, expenditures, etc. Unemployment and changes in … quantitative trade models with full-employment are likely to be biased. I confirm the biased welfare effects by revisiting Caliendo …

Is the impact of financial development on international trade heterogeneous – being positive, negative or null – across … these questions this article uses a panel trade database on 21 manufacturing sectors in 80 countries between 2000 and 2009 …. The analysis demonstrates that the effect of financial development on trade is indeed heterogeneous by estimating a …