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 …

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 …

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 …

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 …

improvement of the domestic trade balance and a deterioration of foreign trade balances in the Euro Area. However, they account … only for a limited proportion of trade balance forecast error variances. Hence, German wage moderation cannot be the lone …

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