In this chapter, Daniel Schwanen addresses the impact of the major trade liberalization efforts undertaken by Canada … and its trading partners beginning with the Canada-U.S. Free Trade Agreement (FTA) in 1989. The author focuses in … particular on the question of whether liberalized trade could have been a factor behind the emergence of greater inequalities in …

Welfare gains from increasing product variety are an important source of the gains from international trade. Recent … empirical studies have largely focused on measuring the gains from an increased variety of imports. Trade theory, however …, suggests that international trade heavily affects the variety of domestically produced goods as well. To overcome the typical …

Findings from the literature suggest that previous estimates of the variety gains from trade are too small because of …

0.7, while import price changes that can be traced back to exchange rate movements of other trade partners only have … mild effects on US prices. Further analysis points to the importance of trade integration, variable markups, and demand …

We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity …

an international trade context. Evidence from U.S. exports supports this view by suggesting that the elasticity of demand … overestimate the gains from reducing trade costs with developed or geographically distant countries and underestimate them with …