sequential production is networked in global value chains (GVCs). In a two-country setting, a decrease in trade costs of …This paper develops a model to study the impact of trade costs on developing countries' industrialization when … improvement. As trade costs further decrease, the wage gap between North and South first increases and then decreases. Extending …

on trade liberalization and investment promotion. Turkey is a gateway to dynamic and complex markets in Asia and Europe … indicators showing the degree of openness of Mexico and Turkey as well as its ability to adapt to international trade, their …

Institutions are source of comparative advantage or disadvantage in international trade. Socio-economic and political … constraints also matter for creating comparative advantage and affect the trade pattern of a country. These diverse ‘beyond the … border' and ‘behind the border' constraints are often not fully captured in the literature on international trade and …

This paper empirically tests an augmented gravity model of international trade, using four digits disaggregated data … trade of textiles and clothing. Several model specifications were tested using Poisson Pseudo-Maximum Likelihood (PPML) with … Fixed Effects. The results show that income and income-difference between trading countries have positive effect on trade …

This paper assesses the quantitative importance of including sectoral heterogeneity in computing the gains from trade … dimensions, including the elasticity of trade to trade costs, the value-added share, and the input-output structure. The key … parameter we estimate is the sectoral trade elasticity, and we use the Simonovska and Waugh (2014) simulated method of moments …

We introduce quality differentiation into a Ricardian model of international trade. We show that (1) quality … countries tend to export the same products. (3) Quality differentiation implies that the gains from inter-product trade mostly …

three main steps: (i) We fi rst consider a simplifi ed trade model that is centered on the assumption that countries' global … a multi-product Eaton and Kortum (2002)-model, and show how our main insights from the simplifi ed trade model apply to …

This note studies the influence of a financial transaction tax and transaction costs on the optimal production and …

This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic … Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a … new quantitative spatial trade model and to use an associated technique which is extraordinarily parsimonious and tightly …

production structures. Apart from domestic development, international trade patterns are affected by transport costs and …Adam Smith is commonly referred to as one of the first who thought of foreign trade in terms of an international … division of labour, whereby each country specialises in the production of certain goods. It is argued that he made a strong …