What precisely were the causes and consequences of the trade wars in the 1930s? Were there perhaps deeper forces at work in reorienting global trade prior to the outbreak of World War II? And what lessons may this particular historical episode provide for the present day? To answer these...

We examine the evolution of market potential and its role in driving economic growth over the long twentieth century. Theoretically, we exploit a structural gravity model to derive a closed-form solution for a widely-used measure of market potential. We are thus able to express market potential...

Iceberg transport costs are one of the main ingredients of modern trade and economic geography models: transport costs are modelled by assuming that a fraction of the goods shipped "melts in transit". In this paper, we investigate whether the iceberg assumption applies to the costs of...

Globale Arbeitsteilung mit globalem Handelsaustausch hat es schon immer gegeben. Mittlerweile machen geringe Transportkosten diese Arbeitsteilung intensiver – auch bedingt durch den beispiellosen Abbau von Handelshemmnissen nach dem Zweiten Weltkrieg. Die Wohlfahrtseffekte des internationalen...

Commonly used trade-weighted real exchange rate indices are computed as indices-of-indices, and thus do not adequately account for growth in trade with developing countries. Weighted Average Relative Price (WARP) indices solve this problem but do not control for productivity differences, as...

According to the Washington Consensus, developing countries' growth would benefit from reductions in barriers to trade. However, the empirical basis for judging trade reforms is weak. Econometrics are mostly ad hoc, results are typically not judged against models, policies are poorly measured,...

This article shows some important aspects of a worldwide, historical phenomenon: the globalization of commerce and art which started in the second half of the sixteenth century and had the American, Asian and European territories of the Hispanic Monarchy as main protagonist during the Early...

This paper investigates the impact of the emergence of China and Eastern Europe as increasingly important players on the world market for a small open economy such as the Netherlands. We describe and compare in detail revealed comparative advantages across the different country groups. This...

This study examines the reasons for changes in the composition of international trade in agricultural and food products. We use a Gravity Model to compare the impact of the key factors in bilateral agri-food trade, which we split into three main product groups, between 1963 and 2000 for a...

What has driven trade booms and trade busts in the past and present? We derive a micro-founded measure of trade frictions from leading trade theories and use it to gauge the importance of bilateral trade costs in determining international trade flows. We construct a new balanced sample of...