This paper analyses to which extent domestic institutions affect trade flows. We use two complementary approaches, one focusing on the size of total trade flows and one focusing on bilateral trade patterns (gravity equation). Besides, we control for two other domestic policy variables: trade...

The authors review current developments in international trade and its prospects for the future arguing that despite the recent slowdown, trade remains an important driver of economic growth and development. Scepticism towards further trade opening needs to be addressed, notably via appropriate...

Global imports subject to pre-shipment inspections (PSI) – a practice under which imports need to undergo a third party review process before shipment – shrank from 700 bn USD in 2010 to 87 bn in 2018. However, only little is known about the trade impact of such procedures, which on the one...

Economic theory suggests that countries' tariff commitments in trade agreements reflect their import market power at the time of negotiations. However, as countries grow, their market power in different sectors can change in unforeseen ways and their commitments may no longer reflect changed...

The WTO Trade Facilitation Agreement (TFA) has been predicted to bring about an expansion in trade flows and real income gains. To date, there is still very limited empirical evidence on the actual post-implementation impact of the TFA. This paper provides an assessment, combining econometric...

Some countries have voiced unease about differences between their own tariff rates and those of major trading partners, calling for more "reciprocity". These calls raise the question how large the negative spillover effects of countries' tariffs on others have become over time. Given a presumed...

Constructing fully traceable scenarios based on assumptions grounded in the literature, we are also able to isolate the relative impact of key economic drivers. We find that the stakes for developing countries are particularly high: The emergence of new players in the world economy,...

We investigate to what extent the probability that a Specific Trade Concern (STC) is raised in the WTO against a Member in a given sector is affected by past reductions in applied tariffs. Employing an identification strategy based on 'new measures', we find evidence of a substitution of...

We propose and apply methods to quantify the impact of national institutions on international trade and development. We are able to identify the direct impact of country-specific institutions on international trade within the structural gravity framework. Our approach naturally addresses the...