There are increasing fears that trade reform - and globalization generally - will increase the uncertainty the average (especially less skilled) worker faces. If product markets become more competitive and the access to foreign inputs is increased, will demand for workers among existing firms...

Policymakers typically assume that trade liberalization and foreign aid ultimately reduce international migration - that is, that trade and aid are substitutes for migration. In the Heckscher-Ohlin framework, too, trade liberalization (by reducing international price differentials between...

Although the impact of international trade is usually analyzed at the macroeconomic level or at the industry level, the authors here explicitly restrict their analysis to the microeconomic level, the level of the firm. Specifically, they investigate the relative importance of integration with...

In 1985, after decades of an import-substitution industrial strategy, Mexico initiated a radical liberalization of its external sector. Between 1985 and 1988, import licensing requirements were scaled back to a quarter of earlier levels, reference prices were removed, and tariff rates on most...

That free trade allows economies in an ideal world to achieve the greatest possible welfare is one of the few undisputed propositions in economics. In reality, however, free trade is rare. The author argues that many developing countries intervene in trade at least partly to raise revenues, and...

This paper contains a numerical listing of working papers prepared by the Policy, Research Complex. Each citation contains a brief abstract, and the contact point for the paper.

Fernandes explores Colombian trade policy from 1977-91, a period of substantial variation in protection across industries, to examine whether increased exposure to foreign competition generates plant-level productivity gains. Using a large panel of manufacturing plants, she finds a strong...

In the course of trade-policy reforms, countries must confront at least two important questions with respect to tariffs. First, what is the optimal structure of tariffs? In particular, is it optimal to tax all imports at a uniform rate? Second, should intermediate inputs be subject to import...

How does economic geography influence industrial production and thereby affect industrial location decisions and the spatial distribution of development? For manufacturing industry, what are the externalities that matter, and to what extent? Are these externalities spatially localized? The...

The link between economic growth, and better provision of infrastructure services may be unproven, but it is clear that reforms to make infrastructure services more competitive (where possible), and to provide strong, and independent economic regulation of natural monopolies, do create an...