We study how trade wars propagate to countries that are not directly targeted. We develop a three-country New Keynesian model with trade in final and intermediate goods, incomplete asset markets, and asymmetric monetary regimes, and quantify the spillovers of the 2025 U.S.-China tariff...

This paper reexamines the trade creation effects of migration using a large sample of 180 countries from 1995 to 2023. We estimate a structural gravity model of bilateral trade augmented with migration stocks, investigating whether immigration to OECD countries relates to the extensive and...

We consider welfare impacts of prohibitive tariffs on trading partners. Initially, there is prohibitive tariff by one country and a zero tariff by its trading partner. Thereafter, the trading partner also resorts to prohibitive tariff. We demonstrate how prohibitive tariffs by the trading...

We investigate the systematic complementarities between import and export activities of firms using a novel firm-level data set for Germany. Specifically, we examine whether firms that import more are also inclined to export more, decomposing this relationship into extensive country and product...