It has become increasingly common to produce goods in a number of geographically dispersed stages linked by international trade. This tendency, known by names such as production fragmentation, processing trade, and vertical specialization, has important implications for the analysis of nontariff...

We set up a trade model where three countries compete for an exogenous number of firms. Our innovation lies in the geography of the model. Of the three countries, one is the hub through which all trade takes place. First, we establish the natural geography of the region, which is given by the...

Cross-border mergers and acquisitions (M&As) have increased dramatically over the last two decades. This paper analyses the role of trade costs in explaining the increase in both the number and the value of cross-border mergers and acquisitions. In particular, we distinguish horizontal and...

To estimate correctly the effect of variable trade costs on firms' exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that may...

Trade costs such as applied tariffs, transportation and insurance costs are amplified as they pass through the multiple production steps associated with modern supply chains. This so-called "cascade effect" arises since trade costs accumulate as intermediate goods are imported and then...

We study the effect of transaction costs (e.g., a trading fee or a transaction tax, like the Tobin tax)on the aggregation of private information in financial markets. We analyze a financial market à la Glosten and Milgrom, in which informed and uninformed traders trade in sequence with a market...

We analyze the decline in the U.S. share of world merchandise exports against the backdrop of a model-based measure of competitiveness. We preliminarily use constant market share analysis and gravity estimations to show that the majority of the decline in export shares can be associated with a...

Determinants of trade among various Indian states have been poorly studied in the literature. In this paper, we examine the nature of agricultural trade among Indian states and identify why certain states export more than others, and what governs trade among these Indian states. Using data...

Financial development plays an important role in the structure of the trade balance and promoting economic development. Trade literature suggests that differences in economies' endowments of labour, land, physical capital and technology explain the dynamics and patterns of international trade...

The scope and depth of bilateral and regional preferential trade agreements (RTAs) negotiated over the past 15 years has expanded beyond traditional market access and preferential tariffs to include provisions on a wide range of issues, including trade facilitation. This study is a first attempt...