Showing 1 - 10 of 210
relative cost of trading within borders. The cost of trading across borders therefore appears relatively smaller. This …
Persistent link: https://www.econbiz.de/10011458028
We study the welfare impact of rules of origin in free trade agreements where final-good producers source customized inputs from suppliers within the trading bloc. We employ a property-rights framework that features hold-up problems in suppliers' decisions to invest, and where underinvestment is...
Persistent link: https://www.econbiz.de/10013362760
We revisit the natural experiments of division and unification of Germany now that more time has passed and more data have become available. We show that local market access shocks are not symmetric in time. The negative shock to local market access following the division of Germany lead to a...
Persistent link: https://www.econbiz.de/10013549090
This paper explores how improved internet infrastructure impacts supply chains and economic activity, focusing on Türkiye. Using the expansion of fiber-optic networks and firm-to-firm transaction data, we find that better connectivity shifts input sourcing to well-connected regions and...
Persistent link: https://www.econbiz.de/10015164646
We study the evolution of labor shares in 1995-2014, while taking into account international trade based on value added concepts. Declines in labor shares accelerate in 2001-2007, concurrently with global value chain (GVC) integration, after which there is no trend for both. We develop a...
Persistent link: https://www.econbiz.de/10013285571
This paper investigates the impact of the Covid-19 pandemic on trade flows in the case of the European countries. First, an ARDL dynamic panel model is estimated using the PMG method to analyse monthly data covering the most recent period (2019M1-2021M12); then, the GMM and PCSE approaches are...
Persistent link: https://www.econbiz.de/10013285828
This paper sets up a general equilibrium model, in which firms are heterogeneous due to productivity differences and workers have fairness preferences and hence provide full effort only if their factor return is sufficiently high. With the wage considered to be fair by workers depending on the...
Persistent link: https://www.econbiz.de/10003897284
Why do borders still matter for economic activity? The reunification of Germany in 1990 provides a unique natural … experiment for examining the effect of political borders on trade both in the cross-section and over time. With the fall of the … one generation (between 33 and 40 years or more) to remove the impact of political borders on trade. This finding strongly …
Persistent link: https://www.econbiz.de/10003898827
This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and the...
Persistent link: https://www.econbiz.de/10003898866
Many studies have found that international borders represent large barriers to trade. But how do international borders …. -- international border effects ; intranational home bias ; domestic borders ; gravity ; trade costs …
Persistent link: https://www.econbiz.de/10003902081