To what extent has trade liberalization contributed to global production fragmentation and the formation of production … networks? We derive structural equations for value added trade flows, the domestic value added content of exports (DVA) and the … accession in 2001. We find that the associated trade cost changes spurred global production fragmentation, explaining about 6 …

all endogenously determined and respond to trade integration in a way that is consistent with empirical evidence. Using … Canada-US regional data, we structurally estimate the model and simulate the impacts of removing all trade barriers generated …

The expansion of regionalism has spawned an extensive theoretical literature analysing the effects of Free Trade … Agreements (FTAs) on trade flows. In this paper we focus on FTAs (also called European agreements) between the European Union (EU … effects on trade flows by treating the agreement variable as endogenous. Our theoretical framework is the gravity model, and …

A structural gravity model is used to estimate barriers to services trade across many sectors, countries and time …

) joint trade costs endogenous to bilateral volumes, (ii) long run gravity as a limiting case of efficient investment in … bilateral capacities, (iii) a structural ratio of short run to long run trade elasticities equal to a microfounded buyers …' incidence elasticity, and (iv) tractable short and long run models of the extensive margin. Application to manufacturing trade …

We propose a simple method to identify the effects of unilateral and non-discriminatory trade policies on bilateral … trade within a theoretically-consistent empirical gravity model. Specifically, we argue that structural gravity estimations … should be performed with data that include not only international trade flows but also intra-national trade flows. The use of …

) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on … make trade policy inferences. Second, we present and discuss a series of indexes that can be used to summarize the GE … effects of trade policy. Third, we summarize the standard procedures to perform counterfactual analysis with the gravity model …

In a seminal paper, Rose (2004) found that the assumed positive impact of the WTO on international trade was … and separating the WTO from other forms of trade agreements. A key characteristic of this literature is the rather … simplistic way in which trade agreements are treated whereby all trade agreements are lumped together. Trade agreements come …

-discriminatory trade policies within the same comprehensive, and theoretically-consistent econometric specification. Our recommendations …

trade that historically have been addressed largely separately: the (partial) effects on trade of economic integration … of economic integration agreements (EIAs) on members’ trade may be biased upward owing to inadequate control for … intranational trade); we find evidence of this bias using a properly specified gravity equation. Second, our novel methodology …