Worldwide, free trade agreements (FTAs) have remained a debatable issue. This paper tries to demystify the recent myths that have surrounded the FTA strategy of India, especially as part of the Look East Policy. The paper does this by analysing the determinants of Intra-Industry Trade (IIT),...

A two-part model is estimated to see if increasing returns and comparative advantage are empirically equivalent in explaining intra-industry trade. The model has separate mechanisms for determining the occurrence and the extent of intra-industry trade. Estimation is based on an augmented...

This paper is an investigation on the main changes observed in the Italian trade with a group of Eastern European economies over the period 1988-1997, during which Italy has become the second EU trade partner for Eastern Europe after Germany. Eastern European countries show patterns of...

What is the impact of Chinese import competition on Nordic producer prices? In a panel covering 23 (2 digit) NACE manufacturing sectors from 1995 to 2008, instrumental variable estimations predict that when Chinese imports capture a 1% increase in market share, Nordic producer prices decrease by...

We incorporate demand-side considerations in trade in a systematic but straightforward way. We do so by focusing on the role of inequality in the determination of trade flows and patterns. With non-homothetic preferences, when countries are similar in all respects but asset inequality, we find...

This paper deals with fragmentation both theoretically and empirically. Not only it presents a picture of the existing literature on the field but it also provides some basic hints for future investigation. It pays particular attention to the possible theoretical dichotomy between fragmentation...

In this paper, we study the nature of Spanish intra-industry trade and find that intra-industry trade with CEEC, Asian and Mediterranean countries has increased considerably since the middle of the Nineties. The second aim of the paper is to study if the comparative advantage argument also...