This paper examines the effect of a change in U.S. trade policy on the domestic investment of U.S. manufacturers. Using a difference-in-differences identification strategy, we find that industries more exposed to reductions in import tariff uncertainty exhibit relative declines in investment...

In this paper we investigate whether multilateral trade liberalisation undermines or encourages preferential trade liberalisation. We use highly disaggregated data at the tariff-line level and find an 'emulator effect' of multilateral trade liberalisation on preferential trade agreements....

Neither of the major negotiations underway in the Asia-Pacific region, the Regional Comprehensive Economic Partnership and the Trans-Pacific Partnership, includes both China and the United States. By failing to connect these economies, these agreements would leave much of the economic and...

Before the Trans-Pacific Partnership (TPP) was scheduled to enter into force, the United States withdrew from the trade accord. Eleven other TPP signatories decided to revive the agreement, which led to the implementation of the Comprehensive and Progressive Agreement for TPP (CPTPP). The...

This paper deals with the trade and welfare effects of a potential bilateral trade agreement between the US and Japan. A possible agreement is currently being discussed between Washington and Tokyo, although, there is also the alternative for the US government joining Trans-Pacific Partnership...

Language is a strong and robust determinant of international trade patterns: Countries sharing a common language trade significantly more with each other than countries using different languages, holding other factors constant. In this paper, we show that this trade-promoting effect of language...

There is a well-established literature finding that the Canada-U.S. border has a large dampening effect on trade, is asymmetric, and differs across provinces. In this paper, I demonstrate that the standard gravity model used to obtain these results provides biased estimates of the volume of...

Few policy issues in Brussels and Washington DC are met with such a compact unity across political boundaries as the idea of deepened transatlantic economic integration. Twenty years after the fall of the Berlin Wall, the support for transatlantic economic co-operation remains strong. The...

This paper presents a baseline model that illustrates the implications of Mutual Recognition Agreements (MRAs) for excluded nations. The model shows that MRAs can harm third country exports because of a trade-diversion effect. We use highly disaggregated trade data from developed and developing...

European Union and the United States have decided to start negotiations over a Transatlantic Trade and Investment Partnership. Among other things, the agreement would include a reduction in trade and investment barriers as well as barriers against participation in public procurement projects. If...