firms. Whereas trade does not affect the firm-internal assignment of workers to tasks, it reduces the range of tasks … minimum wage. In this case trade leads to higher per-capita income for both skill types and thus to higher welfare in the open …

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 paper challenge the link between per-capita GDP and trade predicted by …

of trade liberalization. This paper is the first one to address productivity leapfrogging between two countries using a … heterogeneous firms trade framework. In the model, firms' R&D investments determine their expected productivity draw. In one country … firms face lower R&D costs. Before trade liberalization, the sector productivity and the competition intensity is higher in …

We incorporate trade in tasks l a Grossman and Rossi-Hansberg (2008) into the international trade theory of fi rm …

study the implications of the rise of the service sector and its interaction with international trade and factor mobility … an agglomerative force and trade costs and comparative advantage in final goods and services which act as dispersion …

We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach … combines the uncertainty shock idea of Bloom (2009) with a model of trade, extending the idea to the open economy. Firms import … international trade flows than in domestic activity. We confront the model with newly-compiled U.S. import data and industrial …

developed financial system and investigates a potential mechanism by applying insights from the finance and trade literature. It …

Trust in the citizens of a potential partner country may affect the decision to trade with or to migrate to a foreign … country. This paper employs panel data to examine the causal impact of such bilateral trust on international trade and …

We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall …. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize …. We show analytically that an analysis based on iceberg costs necessarily underestimates the welfare gains from trade …