So-called "connector" countries have been argued to benefit from the US-China trade tensions, given their rising share in US imports. This paper draws an important distinction between trade reallocation-countries increase domestic production to substitute for declining Chinese exports to the...

We explore the impact of export quality on the levels of exports and domestic trade. First, we developed a theoretical framework, using the two-country oligopolistic model with quality differentials in product. We find that a consumer-preference driven increase in export quality improves export...

This paper investigates the role of firm heterogeneity in environmentally extended new trade models, contrasting Eaton-Kortum and Melitz models to Armington and Krugman models. We show that when emissions per sales are constant across firms -- a standard assumption in the literature -- all four...

This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...

This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...

The question of whether trade agreements are 'stepping stones' or 'stumbling blocks' to multilateral trade liberalization is not a new one; however, the empirical methods and the quality of the data used to address this question are continually improving. This paper explores this familiar...

Trade agreements are powerful drivers of global economic integration, leading to increased trade flows between countries. Usually, trade agreements are extensive documents with hundreds of provisions and different levels of enforceability. Are all these provisions useful, even those that are...

The gravity model, which is applied to international trade, explains the conceptual models of international business. It has been used in various areas of the global economy, such as trade, foreign direct investment, and even the determinants of tourist demand at the level of countries and...

A striking pattern in transaction-level data is the concentration of international shipments in the hands of a few large firms. One common feature of dominating high-performance firms is that they produce multiple products and ship them to many destinations. Motivated by the emergence of highly...

"In this insightful book, Bernadette Andreosso-O'Callaghan and Daniel Rajmil bring together a diverse range of experts to explore how the uncertainties of the geopolitical and geo-economic sphere are being dealt with in international business. They question the suitability of existing policy and...

The gravity model is widely used to estimate the effect of a reduction in trade costs on international trade flows. However, researchers face many analytical decisions in their choice for an empirical strategy. This paper uses a specification curve analysis method to study the effect of these...

With the projected growth of the global electric vehicle market that is estimated to double in the next decade, the expansion of the battery manufacturing capacity will primarily depend on the auto market’s electrification. Moreover, the market growth puts new requirements on the end-of-life...

This paper discusses the dynamics of foreign trade in the post-Soviet space within the Eurasian Economic Union (EAEU) during the period from 2015 to 2021. Additionally, the paper analyzes export indicators in foreign and mutual trade of the EAEU member countries and diversification of the...

During his reign from 1979 to 2005, Pope John Paul II visited 129 countries, more than the 263 Popes before him combined. I document a significant increase in exports to trading partners with a relatively high share of Catholics following a Pastoral visit, leading to a non-negligible increase in...

This paper introduces a novel mechanism by emphasizing benefits for firms through participation in buyer networks among firms that source the same locally produced inputs. In a first step, we utilize register-based data from Denmark to generate a firm-specific buyer network variable which relies...

Foreword -- Preface -- Executive Summary -- Session 1: Energy, Climate, Growth -- Chair: Jayant Sinha -- Speakers: Jessica Seddon, Robert Stavins, Arunabha Ghosh -- Session 2: Technology, Policy, Jobs -- Chair: Sachin Chaturvedi -- Speakers: Paul Samson, Albert van Jaarsveld, Debjani Ghosh --...

How do shifts in the global balance of power shape the world economy? We propose a theory of alignment-based “hegemonic globalization,” built on two central premises: countries differ in their preferences over policies (such as the rule of law or regulatory frameworks) and trade between any...

Despite a strong start to 2025, the German economy will experience middling growth for the time being before beginning a long-awaited upturn at the end of the year. DIW Berlin's forecast indicates growth of 0.3 percent for 2025 and of 1.7 percent for 2026; thus, DIW Berlin is increasing its forecast...

Using a new database on global multinational production (MP), I document that world multinational enterprise (MNE) sales declined as sharply as trade during the Great Recession. This collapse was driven by MNEs from a few key headquarters countries, associated with steeper GDP declines in...

On average, wages of female workers are lower than wages of male workers. In this paper, we explore to what extent a gender bias in trade costs explains this gender wage gap and how different policy reforms could lower it. First, we analyse the relation between various types of trade costs and...

The outlook for the global economy continues to be weighed down by high uncertainty surrounding economic policy in the United States in general and aggressive tariff measures in particular. Although the threat of tariffs actually boosted economic activity at the beginning of the year, as...

I study the impact of domestic and foreign geopolitical risk (GPR) on economic expectations, and how trade linkages affect the transmission of foreign risks. Using monthly professional forecasts since 1995, I start by estimating the effect of GPR events on the distribution of expectations across...