This paper studies the role of reduced barriers to international trade from two dimensions: (i) the implementation of Free Trade Agreements and (ii) declining "border effects". Our empirical estimates suggest that diminished border effects accounts for the bulk of the increase in international...

How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to the effect of currency unions on international trade. While we...

This paper investigates the impact of the 2008 economic crisis on industries in East Asia. It attempts to identify the transmission mechanism and the magnitude of the impact of the crisis on industries in East Asia using the updated Asian international input–output table for 2008. The analyses...

In contrast to existing published literature that assumed the EPAs tariff cuts, this paper uses the tariff cuts actually agreed by some African countries to quantify fiscal revenue losses from the EPAs. It finds that the profile in the tariff cuts vary significantly across countries. Revenue...

This paper discusses the possible impact of RTAs on FDI and trade flows in the Americas. First, it briefly looks at selected RTAs with investment protection, namely the North American Free Trade Agreement (NAFTA), the Group of Three (G-3) and the Andean Community of Nations (ACN). It then...

We examine the roles of regional trade agreements (RTAs) not only in regionalization processes but also in the globalization process. Results confirm that a country can noticeably increase directional trade, particularly exports, through diplomatic relations as well as through membership

Since McCallum's (1995) finding of surprisingly high border effect on trade between US and Canada, there have been a number of studies on other parts of the world, and improvements made to the gravity model to accurately measure this effect. This paper suggests some other modifications to the...

This paper examines the effect of cross-border production sharing on the sensitivity of trade to the exchange rate and to other key variables. Theoretically, the response of a country's exports to the exchange rate should decline as the share of exported components for use in the manufacture of...

The paper analyzes the factors behind the reorientation of transition countries' exports to their non-traditional partners outside their former block. First, the amount of reorientation is calculated using a gravity model. Then, reasons for the cross-country differences in the rate of closing...

We construct a 45-sector model of Ukraine with Turkey and six other regions to estimate the impacts on Ukraine of deep integration with Turkey in their potential Free Trade Agreement (FTA). Our central model contains foreign direct investment (FDI) in business services with endogenous...