The theory of the firm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way contract enforcement institutions determine international trade...

Do tariffs inhibit trade flows by limiting the entry of exporters (‘firm extensive margin’) or by restricting the average volume exported by each firm (‘firm intensive margin’)? Using a gravity equation approach, we analyze how the decrease in tariffs promoted during the 90s by the...