We evaluate the effect of exchange rate misalignments on the balance of trade and the role that global value chain … of real currency misalignments: overvaluation has a negative effect, but undervaluation has no effect on the trade … balance of trade. Therefore, our results suggest that globalization reduces the role of exchange rates in stimulating the …

predictions. The present contribution applies the constrained panel PPML estimator to reconsider the trade creation and trade … diversion effects of regional trade agreements. Results show significant trade creation effects of RTAs ranging in between 8 ….7 and 21.7 percent in 2012, but also point to substantial trade diversion in the range of -14.4 and -5.8 percent. These …

How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation … that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to the effect … of currency unions on international trade. While we estimate that currency unions are associated with a trade increase of …