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The WTO's plurilateral Information Technology Agreement (ITA) reduced tariffs to zero on many IT products. This paper presents a comprehensive study of its trade impacts by incorporating recent insights from both the global value chain (GVC) and time in trade literatures. Inserting tariffs...
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To serve foreign markets, firms can either export or set up a local subsidiary through horizontal Foreign Direct Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important...
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This paper compares various estimation methods often used in the estimation of gravity models of international trade …. The authors first discuss different structural and consistent estimation techniques, their underlying assumptions and … empirical methodologies. They focus on a comparison of the distance and border effects across estimation techniques. For the …
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