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 …

Migration and trade are often linked through ethnic networks boosting bilateral trade. This study uses migration to … quantify the importance of Ricardian technology differences for international trade. The framework provides the first panel … estimates connecting country-industry productivity and exports, and the study exploits heterogeneous technology diffusion from …