A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Arnaud Costinot, Jonathan Vogel and Su Wang (2011), CVW hereafter, we have developed a simple theory...

Since the global crisis, China's foreign trade is no longer driven by its involvement in the global supply chains (i.e. by processing trade) but its dynamics stems from China’s own domestic demand and supply. For foreign funded enterprises, China is less and less a production base for export...

Export restrictions can be problematic if trading partners question either their conformity with international obligations or their possibly unintended negative impacts on others. Regulatory transparency can help. This paper examines how three multilateral environmental agreements (MEAs)...

This paper examines how changes in China's trade environment contributed to the rise in private firm exports. Data from 1997 to 2009 reveal that both increased exposure to multinational firm exports in related industries and expansion in private firm imports at the broad industry level...

Anderson and van Wincoop (2003) showed the importance of multilateral resistance general equilibrium effects in estimating the response of trade flows to trade costs. We integrate this into Helpman, Melitz, and Rubinstein's (2008) extension of Anderson and van Wincoop's framework, which allows...

The production of high-quality goods is often viewed as a precondition for export success and economic development. We provide the first evidence that countries' import tariffs affect the rate at which they upgrade product quality. Our analysis uses highly disaggregated data covering exports...

Trade weighting is a common method of aggregating trade frictions. It will understate changes in these costs when there are non<i>ad valorem</i> trade costs and quality differences. Newly traded goods enter at higher trade costs than previously traded ones. Lower import costs shift trade to lowquality...

A viable peace is one that comes about naturally and persists without the need for outside intervention. At least since Baron de Montesquieu’s statement that “peace is the natural effect of trade. Two nations who traffic with each other become reciprocally dependent; for if one has the...

The share of developing countries in exports of world services increased from 15% in 2000 to 21% in 2011. Interestingly, in many of the developing economies, the growth in services exports is derived from not just traditional services, but also from modern, high-value, skill-intensive services....

This paper demonstrates that the bilateral equivalence between trade in value added (TiVA) and value added content of trade. TiVA, based on value added exports, which is proposed by Johnson-Noguera and OECD-WTO, measures origin country’s value added exports induced by each destination...