We move beyond the nation-state as the unit of analysis and use subnational spatial variation to study the effect of the institutional environment on international trade. Additionally, we address the heterogeneous effect of trade agreements on different regions within a country. Employing a...

The aim of this paper is to assess the impact of the quality of the Romanian governance process on the trade with EU countries between 2007 and 2018 using an augmented gravity model. The panel data method was used in order to cope with heteroskedasticity. The sample covers 12 years and includes...

Using a gravity-like approach, we study how Covid-19 deaths and lockdown policies affected countries' imports from China during 2020. We find that a country's own Covid-19 deaths and lockdowns significantly reduced its imports from China, suggesting that the negative demand effects prevailed...

The consensus back in 2008 – ten years after the introduction of the euro – was that the adoption of a common currency had made a limited impact of around 2% in total on the trade flows of the first wave of euro area countries (Baldwin et al., 2008). Since then, six more countries have...

In this paper we highlight a new complementary channel to the business and social network effect à la Rauch (2001) through which immigrants generate increased export flows from the regions in which they settle to their countries of origin: they can become entrepreneurs. Using very small-scale...

In this paper we highlight a new complementary channel to the business and social network effect à la Rauch (2001) through which immigrants generate increased export flows from the regions in which they settle to their countries of origin: they can become entrepreneurs. Using very small-scale...

This paper is part of a broader agenda and constitutes a first step to empirically understand the main determinants of the inter-provincial trade in Argentina. We use a novel database of regional trade flows between the 24 Argentinean provinces for 2017. Using a structural gravity model and...

Bilateral trade balances often play an important role in the international trade policy debate. Academic economists understand that they are misleading indicators of competitiveness and of the gains from trade. However, they also recognize their political relevance, calling for accurate...

Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has featured prominently in the policy debate over Brexit. We first review the facts, noting the overwhelming evidence that trade tends to fall with distance. We then introduce some...

Bilateral trade balances often play an important role inthe international trade policy debate. Disturbingly, several studies argue that the gravity model of trade fails when confronted with bilateral trade balances data, dubbing this "The Mystery of the Excess Trade Balances". Capitalizing on...