We describe a model of trade with input based product differentiation and non-proportional trade costs that is capable of predicting a positive correlation between firms' export intensity, the price of their exports, and the wages they pay to their workers. These correlations arise in the model...

We describe a model of trade with input based product differentiation and non-proportional trade costs that is capable of predicting a positive correlation between firms' export intensity, the price of their exports, and the wages they pay to their workers. These correlations arise in the model...

Political motives, geography, and the uneven distribution of gains trumped the traditional efficiency gains across Africa's Regional Economic Communities (RECs). The small, sparsely populated, fragmented, and often isolated economies across Africa make a compelling case for these economies to...

This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a new quantitative spatial trade model and to use an...

This paper assesses the existence and extent of transition cost for the OECD economies associated with the increasing Chinese competition in the export markets. We find that intensified Chinese competition is an important factor in explaining structural changes not only within the manufacturing...

Purpose – The purpose of this paper is to develop a tractable general-equilibrium model, where the market is mixed of large firms (oligopoly) and small firms (monopolistic competition). We will provide new implication of trade gain.Design/Methodology/Approach – Our discussion relies on...

We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the quot;trade creationquot; effect and the quot;exploitation...

This paper combines current literature on the heterogeneous firms in international trade with the public economics of fiscal policy. We study the nexus between the intensive and extensive margins of trade, and their relationship with fiscal policy. When taxes are collected through the fixed...

This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a new quantitative spatial trade model and to use an...