We study environmental policy in a two nation world in which there is strategic behavior by governments and polluting firms. Two issues are analyzed. First, the conditions under which the conduct of unilateral environmental policy by a nation in a Bertrand game will immiserize that nation, are...

Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on...

This paper quantitatively investigates the extent to which variation in the intertemporal marginal rate of substitution can help account for puzzling features of cyclical fluctuations of international trade volumes. Our insight is that, because international trade is time-intensive, variation in...

This research argues that the rapid expansion of international trade in the second phase of the industrial revolution has played a significant role in the timing of demographic transitions across countries and has thereby been a major determinant of the distribution of world population and a...

Despite the ongoing worldwide trend toward regional integration, Japan has remained outside of all regional trading agreements. Because more than 60 percent of Japan's trade is with countries that are members of a major regional bloc, this reluctance may have had significant effects on its...

Foreign trade is, like elsewhere and for obvious reasons, one of the key indicators of North Korea’s economy. However, since the state is notoriously reluctant to provide related figures, we have to rely on external sources to obtain this data. The South Korean Trade-Investment Promotion...

The paper builds a unique industry‐level panel data set to estimate the border effects associated with US–Canada trade for each year from 1992 to 2005. We first establish the theoretical foundation of our empirical model as a multisector version of Anderson and van Wincoop. Estimates from...

This paper analyses the evolution of the South American Common Market, Mercosur. It shows how the lack of coordination of macroeconomic policies, especially of the two major participants (Argentina and Brazil), had caused trade strains and conflicting interests in attracting foreign investments....

This paper argues in favor of broadening the trade and environment debate in the WTO to include a developmental perspective. It takes the US-Tuna II dispute between the United Sates and Mexico as an example to show the complex intertwinement between economic, environmental and developmental...

Trade and trade policy are central to transforming our world, the objective of the 2030 Agenda for Sustainable Development. Trade can make a crucial contribution to sustainable development objectives, including economic growth and poverty reduction, but requires a coherent policy framework that...