I study how cross-country capital market integration affects the gains from trade in a model with financial frictions and heterogeneous, forward-looking firms. The model predicts that misallocation among exporters increases as trade barriers fall, even as misallocation decreases in the...

The contribution of transfers, capital and labor mobility to consumption smoothing are much lower within the European Union than within the United States. This paper identifies the three major smoothing channels by using a structural model and analyzing micro and macro data. I show that, while...

The increase in migration from Eastern to Western Europe after their accession to the European Union (EU) in 2004 resulted in a large increase in remittances to New Member States (NMS) and were comparable in size to FDI or EU funds. This paper adds to the literature by analyzing the impact of...