A view receiving increased support is that the height of trade costs in prime export sectors has a strong effect on current account balances: countries specializing in sectors that face relatively high trade costs, such as services, tend to run current account deficits, and similarly, countries...

Although the OECD Anti-Bribery Convention has been signed by dozens of countries, only some of them enforce the laws against foreign bribery. To estimate whether the enforcement deters exports, we use a microfounded gravity model of bilateral trade flows of 132 countries. Our results imply that...

Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor...