countries. We test how trade costs dampen the effect of real exchange rate movements on bilateral exports, and show that the … results are highly consistent with the existence of an hysteresis effect of real exchange rate movements on trade, as …

This paper assesses the Euro’s influence upon European trade by estimating two different indicators. The first is the … with its trade partners. This study of the Euro’s influence by means of the Border Effect is a novelty in the literature …, it reveals that the Euro’s influence upon trade is not so clear as papers focused only on the Rose Effect claim. This …

addition to its well-established relevance for the level of trade. A simple model of trade with endogenous markups shows that … demand shocks have a larger impact on trade between more distant countries. We test this implication in two steps, relying on …, linguistic, and internet). We first show that during the Great Trade Collapse of 2007-09 international transactions fell more …

This paper empirically investigates the effect of the EU-South Korea free trade agreement (FTA) on manufacturing trade … flows. By applying a state-of-the-art structural gravity model with intranational (i.e., domestic) trade and using … disaggregated data, we quantify both the trade impact and the observed heterogeneity in the FTA estimates. In line with literature …

It is common to observe that demand elasticities in trade equations for imports are implausibly large, and that they … differ between countries. Both of these present us with problems, as they imply trade will rise without bound as a proportion … trade as a proportion of GDP. We show that the inclusion of the ratios of outward and inward FDI to GDP as additional …

trade prices and exchange rates. Results indicate that (i) the elasticity of trade prices in emerging markets is sizeable …