In this paper, we study how contract enforcement at the local level affects a firm's ability to supply customised intermediate inputs to foreign firms. Using Italian firm-level data, we show that firms located in courts with higher judicial trial length in civil disputes, which is our measure of...

Industries that occupy upstream positions in global value chains (GVCs) - being positioned closer to the raw product - produce proportionately more CO2-intensive. However, firms are heterogeneous, even in narrowly defined industries. In this paper, I empirically investigate whether the...

International trade ows reveal strong persistence over time. This paper is concerned with the role of trade agreements in this persistent environment. The data reveal a high level of heterogeneity of the trade- creating effect along the trade volume and per-capita income distributions. If...

The present paper studies the modelling of inter-regional trade flows in the newly developed general equilibrium model of European Commission, Rhomolo. In contrast to international trade, usually, trade of goods and services between regions is not recorded statistically. As a result, no...

The well-known question whether regional trade agreements (RTAs) and the multilateral trading system (MTS) are strangers, friends, or foes (Bhagwati and Panagariya, 1996) has gained new importance with the widespread proliferation of RTAs in recent years. Based on an extensive data set which...

Krugman's (1979, 1980) monoplistic competition model of trade showed that countries with more similar per-capita GDP trade more with each other. Does this mean that developing countries shift trade towards developed countries as a result of high economic growth? The results reported in this...

We document a hitherto overlooked stylized fact: countries’ external tariff schedules are surprisingly similar. The correlation is particularly striking for countries belonging to the same deep preferential trade agreement (PTA). We show that most of this is due to selection effects rather...

This paper examines the effect of the two most recent European Union enlargements on CEECs trade of intermediate and final products separately. A theoretically justified gravity model which incorporates the extensive margin of trade and accounts for firm heterogeneity is estimated using highly...

There is strong empirical evidence that countries with lower per capita income tend to have smaller trade volumes even after controlling for aggregate income. Furthermore, poorer countries do not just trade less, but have a lower number of trading partners. In this paper, I construct and...