In this paper, we present a monopolistic competition model that incorporates asymmetric trade barriers and international differences in production costs. The model implies a highly non-linear bilateral trade equation. Estimation of this equation yields parameters for the elasticity of...

This paper provides micro-level evidences on the close linkage between globalization and wage inequality. We investigate the wage premium and wage spillovers effect of foreign-invested enterprises and exporters in Chinese manufacturing industry. The results show that there is significant foreign...

This paper focuses on a less-studied corruptive behavior hidden in trade facilitation costs. We use Chinese firm-level data to identify systematic variations in entertainment and travel costs (ETCs) across different trading markets and trading partners. We find that ETCs significantly increase...