This paper develops a structural VAR model to measure how a shock to one country affects other countries' GDP. It uses trade linkages to estimate the multiplier effects as a shock is transmitted through output fluctuations and introduces a new specification strategy that reduces the number of...

This paper analyses the growth of production and employment in China during the period 1978 to the early 1990s. It argues that the Chinese experience with export-led growth provides an excellent case study of the phenomenon of a vent for surplus resources provided by exports, identified by Adam...

Why is the trade regime amongst the most robust of international regimes? For half a century we have been told that it is because trade law gradually replaced trade politics. This article contests the orthodox view. Part I rewrites the history of world trade as a carefully balanced...

The incomplete nature of contracts governing international transactions limits the extent to which the production process can be fragmented across borders. In a dynamic, general-equilibrium Ricardian model of North-South trade, the completeness of international contracts is shown to lead to the...

This paper compares various specifications of the gravity model of trade which are commonly used in the literature. It shows that most of them can be regarded as nested versions of a general specification in which the heterogeneity of bilateral country-pair fixed effects is accounted for. This...

This paper analyzes the welfare implications of international spillovers related to productivity gains, changes in market size, or government spending. We introduce trade costs and endogenous varieties in a two-country general-equilibrium model with monopolistic competition, drawing a...

One of the best established empirical results in international economics is that bi-lateral trade decreases with distance. Although well-known, these results have not been systematically analyzed before. We examine 1052 distance effects estimated in 78 papers. Information collected on each...

The pallet is a platform used for storing, handling, and transporting products. There are hundreds of different pallet sizes around the world. Raballand and Aldaz-Carroll examine the case of pallets to illustrate the impact of multiplicity of standards on trade costs. They select this case...

This paper examines the roles of quality and increasing returns in trade. It implies that there is intense intra-industry trade among economies with similar levels of per capita income, which increases both the quality and the quantity of consumption. However, there may be no trade in...