Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …

extra-Asian trade, almost all sample countries concentrate their intra-Asian exports more on non-manufactures. Within …The paper analyses sectoral patterns of intra-Asian trade for selected Asian countries as well as for sub … Asian countries have successfully diversified their manufactured exports towards more skill-intensive products. Relative to …

Cultural proximity increases bilateral trade flows through a trade-cost and a bilateral-affinity (preferences) channel …-invariant, in a gravity model of bilateral trade, the time dimension of the ESC data allows to identify the preferences effect. The … find robust evidence for a sizable preferences effect, the impact of cultural proximity on trade runs largely through the …

The purpose of this paper is twofold. First, we explore empirically to what extent the determinants of trade in … services differ from those of trade in goods. Second, by the use of instrumental variables, we explore potential … complementarities between bilateral trade in goods and bilateral trade in services. Using a gravity framework, the main results show …