Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to comparative advantage, expanding the industries that do...

We propose a structural alternative to the Economic Complexity Index (ECI, Hidalgo and Hausmann 2009; Hausmann et al. 2011) that ranks countries by their complexity. This ranking is tied to comparative advantages. Hence, it reveals information different from GDP per capita on the deep underlying...

This paper examines the transformations that occurred in Moldova'sforeign trade on international markets, with focus on agricultural and food commodities. The research includes the analysis of Moldova's foreign trade activity with agricultural and food commodities, the changes that occurred in...

This paper presents a simple two country model in which firms in manufacturing sector choose a technology level (high or low). I show how trade integration and productivity differential affect technology choice clearly. In particular, if the gap of productivity of high technology is medium,...

We use firm-level data for 15 countries and 13 manufacturing sectors to estimate firm-level productivity parameters and to establish representative country-sector-specific empirical productivity distributions. We use these distributions against the backdrop of multi-sector versions of the models...

Differences in environmental regulation between rich and poor countries have caused a geographical relocation of polluting industry from the former to the latter. In several cases the reduction in domestic emissions is at least partly compensated by an increase in trans-boundary pollution which...

This paper examines the effects of international trade and resource management in a two-country model where each country controls domestic harvest to prevent over-exploitation of an internationally shared renewable resource (e.g., fishery resources). We show that contrary to conventional wisdom,...

We show in this paper that trade in tasks can explain increasing resistance to globalization in industrialized countries. In a traditional trade model of a small open economy, we demonstrate that schooling provides protection against losses from trade if trade increases the relative price of the...

The paper represents a new reading of the traditional Ricardian theory of comparative advantages to tackle current challenges of environmental and climate policy. In the style of David Ricardo, it demonstrates that international trade is a positive-sum game in a twogoods, two-countries world...