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 …

The practice of trade cost measurement faces several challenges related to data quality, methodology and theory; but … gaps between theory and practice. The results of this work show that domestic trade costs proportionally grow with economic … the major issue is that of data scarcity. Due to these facts both domestic and asymmetric trade costs have been ignored …

in trade flows. We apply our method to trade data between 1990 and 2015 for the world’s 100 largest economies. We find …We develop a structural framework that allows us to quantify the evolution of aggregate bilateral trade costs and … markups over time. With minimal assumptions, we can disentangle aggregate markup and trade cost changes from observed changes …

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 …

We undertake a trade-growth accounting exercise by decomposing data on changes in bilateral international trade flows … into their direct (endowment accumulation, productivity growth, changes in trade costs, changing preferences) and indirect … deep drivers of trade by extending standard new trade models to include endogenous factor accumulation, R&D driven …