This paper examines a much overlooked link between credit markets and formalization: since access to bank credit typically requires compliance with tax and employment legislation, firms are more likely to incur such formalization costs once bank credit is more widely available at lower cost. The...

This paper explores the relationship between preferential and multilateral trade liberalization at the sectoral level using a unique dataset that includes data on most favored nation (MFN) and bilateral preferential tariffs at the 4-digit ISIC level for 11 Latin American countries over the...

We investigate whether greater microeconomic flexibility facilitates the process of creative destruction in the context of new trade models with heterogeneous firms (Bernard et al., 2003 and Melitz, 2003). In these models, freer trade increases aggregate productivity because high-efficiency...

During the past few decades, the landscape of the world economy has changed. New trade patterns reflect the globalization of the supply chain and intra-industry trade, and increasing flows between neighboring countries and trading blocs with similar factor endowments. Similarly, the approach to...

This paper explores several mechanisms by which the barriers imposed by rules of origin may be reduced through effective trade facilitation efforts. Also discussed are the functional similarities of a variety of other requirements on international trade with rules of origin, including...

Migration has recently taken an important place in the agenda of many governments around the world. But the phenomenon of international mobility of individuals is not new. Following Massey [2003], the modern history of international migration can be divided into four periods. During the...

This IDB Working Paper is intended to provide an overview of how the agricultural sector is treated in regional trade agreements (RTAs) involving Latin American countries, whose exports tend to be more oriented towards agriculture. The paper compares the treatment of agriculture in RTAs between...

Most microeconometric studies available for LAC have focused on measuring the direct impact of trade on plant productivity leaving aside other effects that arise through the market selection process. Additionally, most studies have focused on tariff barriers as the only obstacle to international...

Recent studies have shown that developing countries might have significantly better export performance if they were able to increase the duration of their trade relationships. Evidence on duration of these relationships at the firm level is virtually absent. In this paper, we aim at filling this...