Following the liberalization reforms of the late 80s and early 90s, several emerging market economies have experienced large and persistent trade deficits. This paper focuses on the Argentine experience, examining the extent to which trade imbalances in the 1990s resulted from income and...

Italian industry continues to specialise in traditional industries. This is a source of concern for some observers who argue that this kind of specialisation overexpose Italian manufacturing to the competition of low cost producers, especially those located in emerging economies. We verify how...

Heckscher-Ohlin trade theory suggests that greater openness enlarges inter-country differences in stocks of skill (or human capital), which new growth theory suggests would cause inter-country divergence of per capita incomes. Econometric analysis of data on about 90 countries during 1960-90...

Agent-based economics has emerged to complement analytical and empiricalmethods by allowing for more complex heterogeneity in models. Extending theagent-based global trade model Acclimate with five consumer groups, we studyheterogeneity of market emerging consumption price elasticity in response...

The relationship between exchange-rate volatility and aggregate export volumes for 12 industrial economies is examined using a model that includes real export earnings of oil-producing economies as a determinant of industrial-country export volumes. A supposition underlying the model is that,...

We revisit the Armington model developed by Feenstra et al. (2018) that allows the elasticity of substitution between the domestic and foreign varieties to be different from that between alternative foreign varieties. We develop a novel two-stage gravity-based framework to estimate these two...

This paper develops an approach to measuring the intensity of competition in international markets. The method measures the degree of "outside" competition faced by exporters located in one source country from firms located outside the source country. We use the elasticity of price and quantity...

The paper estimates and analyzes an equation for intermediate imports during the 1988-2006 post-liberalization period in Mexico. While some results are obtained from Johansen’s VECM model, most of the analysis is carried out within an Error-Correction ARDL framework, following the bounds...

Recent economic geography and trade empirical studies based on monopolistic competition suggest high levels of trade price elasticities (between 3 and 11). However, price elasticity estimations in trade equations using unit values as price proxies usually lead to lower values of around unity. We...

Time series data for Sri Lanka span periods of pervasive trade and exchange restrictions along with periods of liberalized trade. This paper implements a structural econometric model of aggregate imports which incorporates the implications of the shifts in the policy regime. The results...