Quantitative results from a large class of international trade models depend critically on the elasticity of trade with respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data using the Ricardian...

In this paper, we examine an innovative postal export regime that involves both a streamlining of export procedures and provision of intermediation services to investigate how firms' react to changing trade costs and whether and how these firms learn. In so doing, we use a unique dataset that...

India and Pakistan are the leading textile trading nations in the world. Among the major sectors, the textile and clothing sector accounts for the largest share in trade between India and Pakistan chiefly because of the similarities in culture and the importance of the sector in their economies....

This paper proposes a unique overview of trade policies trends since the launch of the Doha Round, based on detailed data on tariffs and trade covering 130 countries. We show that regionalism has delivered limited effective liberalization so far, leading to only a 0.3 percentage point (p.p.) cut...

China has defied the declining trend in domestic content in exports in many countries. We study China's rising domestic content in exports using firm- and customs transaction-level data. Our approach embraces firm heterogeneity and hence reduces aggregation bias. We find that the substitution of...

Quantitative results from a large class of international trade models depend critically on the elasticity of trade with respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data using the Ricardian...

Do tariffs inhibit trade flows by limiting the entry of exporting firms ('extensive margin') or by restricting the average volume exported by each firm ('intensive margin')? Using a gravity equation approach, we analyze how the decrease in tariffs promoted during the 1990s by the Uruguay Round...

The present paper analyzes the evolution of the specialization and trade patterns of China, India, Brazil and South Africa (CIBS) and other WTO countries. It aims to provide an answer to the following questions: is there a tendency to a multi-polarization of trade patterns? If so, is CIBS' rise...

Now-a-days role of foreign direct investment (FDI) is noteworthy. It acts as the lifeblood of growth. The flow of FDI to a country reflects its potential in the globe. Today, FDI is a buzzword in the Indian economic environment. After the liberalization of economy, Indian government has...

This paper uses the methodology developed in Kehoe and Ruhl (2013) to measure the change in the extensive, or new goods, margin of trade between Japan and China after China's entry into the World Trade Organization in 2001. The new goods account for 15.9% of Japanese exports to China and 22% of...