The paper investigates the costs and benefits of 2004 EU enlargement from the standpoint of Ukraine - a country that has been left behind. This angle allows estimating the costs of non-integration that occurred due to trade diversion and forgone opportunity to carry our structural changes in the...

Abstract: This paper applies a two stage estimation procedure that accounts for a sample-selection bias and firm-level heterogeneity in order to estimate a gravity model of exports at industry level of aggregation for 119 exporting countries and 142 importing countries in 2002-2006. It further...

The declining labor share in national income and rising inequality over the last four decades raise questions about causes of these trends. In order to explain these trends, we develop theoretical model that links intra-industry distribution of wages to variation in market power of firms. The...

A standard neoclassical model of growth predicts convergence of income levels across countries and geographical regions. Recent empirical evidence, however, has shown that the gap between rich and poor countries has increased over the last thirty years. One of the key regularities that are at...

We develop a theoretical model that explains intra-industry distribution of wages with variation in market power of firms, along with traditional variation in productivity. The model predicts that the outcome of the bargaining game between the firm owners and employees depends crucially on the...

After 18 years of negotiations, Russia has joined the World Trade Organization. This paper assesses how the tariff structure of the Russian Federation will change as a result of the phased implementation of its World Trade Organization commitments between 2012 and 2020 and how it has changed as...

This paper brings new evidence on the impact of services liberalization on the performance of manufacturing firms. Using a unique database of Ukrainian firms in 2001-2007, the authors utilize an external push for liberalization in the services sector as a source of exogenous variation to...

This paper demonstrates the welfare implications of the differential disintegration of the EU. Using a structural gravity approach, our estimates suggest that the rest of the EU countries have much more to lose from the disintegration of the EU compared to a disorderly Brexit. At the same time,...