This paper uses a combination of Ethier (1982) and Melitz’s (2003) models to show that liberalizing trade among developing countries, so-called South-South trade, could contribute to improve the access to international markets of developing countries’ would-be exporters. Lower trade barriers...

Massive intra-Asian economic integration has been accompanied by very little institution building. This paper considers whether Asia needs new institutions by drawing lessons from the EU’s supranational integration sequence and EFTA’s intergovernmental sequence. Sequencing theory is...

This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors. The paper provides estimates of the size of the biases taking the currency union trade effect as an example....