Samuelson extends the Ricardian theory of foreign trade to a model of small open economies in which countries can trade semi-finished capital goods on international markets, as well as produced consumer goods. He argues that this extension provides an additional gain from trade, which he labels...

There is an emerging consensus among American politicians and many citizens that trade and globalization have undermined America's working class, resulting in a rise in U.S. populism. This view frequently targets the 2000 U.S. law that granted China “permanent normal trade relations” (PNTR)...

We use a new firm level data set that establishes the location, ownership, and activity of 650,000 multinational subsidiaries - close to a comprehensive picture of global multinational activity. A number of patterns emerge from the data. Most foreign direct investment (FDI) occurs between rich...

This paper measures the extent to which South Korea participated in global value chains (GVCs) from 1995 through 2011 and scrutinizes the consequences of such participation on the Korean economy. To this end, the World Input Output Database is utilized to calculate GVC income, GVC employment,...

I present a new stylized fact from a large sample of countries for the period 2000-2006: bilateral foreign direct investment (FDI) flows are almost never observed in the absence of bilateral trade flows. I document a similar pattern using bilateral foreign affiliate sales (FAS), aggregating them...

The WTO dispute resolution system is widely used and is a litigation-oriented process. It is at the core of global trade relations today. Both the United States and China have been aggressive users of it. Each country has shown a willingness to address contentious issues. This has been to the...

Global Value Chains are a dominant feature of today's global economy, yet their analysis is still incipient from an empirical perspective. Building on a recent OECD-WTO database and the results of an on-going research at WTO, the present essay contributes at filling this gap. The effective...

This study analyzes the impact of bilateral free trade agreements (FTAs) on the investment of multinational firms located outside the FTA-covered regions. Specifically, we analyze how Japanese firms located in the European Union (EU) changed their investment behavior in response to the EU-Korea...

This paper uses a static and dynamic gravity model of trade to investigate the link between German development aid and exports from Germany to the recipient countries. The findings indicate that in the long run,German aid is associated with an increase in exports of goods that is larger than the...

This paper analyzes the relationship between bilateral trade flows, trade openness, and asset holdings in a three-country stochastic general equilibrium model. The threecountry model set-up enables me to disentangle and separate the effects bilateral trade flows and trade openness have on...