This paper analyses the consequences for the standard import allocation models of assuming monopolistic competition on the supply side. Together with relative prices, this requires additional variables to capture product differentiation effects. To this end, we derive a composite price index...

Even if the debate on globalization pits sceptics and enthusiasts against one another, they seem to agree at least on exposing the protectionism of developed countries. This is illustrated by a recent report by OXFAM on trade, the way some enthusiasts have reacted to it, and miscellaneous...

Firm-level regressions show that Champagne producers that receive better ratings from wine guides also export to more markets, charge higher prices, and sell more in each market. Our method corrects for a severe selection bias predicted by the model. By using direct measures of quality, we can...

The EU-Russia Partnership and Cooperation Agreement, which entered into force in 1997 foresees the possible establishment of a free trade area (FTA) between the parties. The aim of our study is to evaluate the possible economic, social and environmental impact of such a free trade agreement...

The present paper structurally estimates the impact of increased variety in the EU and Asia over the period from 1989 to 2009. Using the most disaggregated import data available, we document that the number of varieties imported by the EU, defined as the number of import categories multiplied by...

Despite the importance of industrial and geographical diversification of exports, the literature says little about what a “normal” level of diversification is. This paper takes a step in this direction and develops a methodology to measure a normal level of diversification along industry and...

This paper develops a methodology for trade policy analysis of costs and benefits of alternative regional integration scenarios, based on the disaggregated gravity equation, and applies it to calculate the impact of the EU enlargement on integration strategies of non-member countries. In...

We examine the qualitative and quantitative predictions of a heterogeneous firm model à la Melitz (2003) in the context of the Canada - US Free Trade Agreement (CUSFTA) of 1989. We calibrate our model to the pre-trade liberalization stage, simulate the trade liberalization, and compute the...

The present paper studies the variety gains of regional integration in Asia. Applying a heterogenous firm model we are able to assess the gains arising from the increased product and consumer choice, which is not possible in trade models with representative firms. We analyse the impacts of the...

Die Biotechnologie, identifiziert als eine der strategischen Zukunftstechnologien, ist gekennzeichnet durch eine hohe Forschungsintensität mit breiten Anwendungsfeldern. Nach einer seit 2001 andauernden Konsolidierungsphase steht die Branche gegenwärtig vor neuen Herausforderungen: der...