Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels … spending on inputs is affected by trade costs. However, in cross-country data, there is no such positive correlation between … is implicitly assumed in the usual formulation of aggregate CES production functions. Whether trade liberalization …

challenge the view that greater openness to trade automatically leads to improved firm entry institutions. My model enables … calculating business entry impediments whereas lobbying game produces structural estimates of the counterfactual levels of trade … extensive margin and asymmetries in technology and trade costs. Importantly, the model demonstrates that startling differences …

This paper examines international trade in tainted food and other low-quality products. Wefirst find that for a large … class of environments, free trade is the trading system that conveysthe highest incentives to produce non-tainted high …-quality goods by foreign exporters.However, free trade cannot prevent the export of tainted products, and the condition fortainting …

tariffs. First, we solve a stylized 2x2 trade model of a large open economy and show that (a) productivity gains via exports … that the incentive to manipulate the terms of trade strategically vanishes, (c) the welfare gain that can be achieved via a … trade-induced productivity gains into account. The USA are the only model region that gains from European optimal tariff …

model of trade and location. More specifically, we introduce horizontal and vertical multi-region firms into the core … effects found in the CP model by making the range of trade costs for which the core-periphery equilibrium occurs smaller. The …

stemming from terms-of-trade improvements and reduced dependence on subsidized and protected industries. The paper also …

The purpose of this paper is twofold. First, we present a new model of agglomeration and trade that displays the main …

favors the country that supplies the most liquid assets. In such a setting, trade liberalization magnifies the gap in …