In a multi-product Melitz model, we demonstrate that after a drop in domestic trade costs, the cost savings on the shipping of domestic intermediate inputs dominate the pressure from increased competition, thus aiding surviving domestic firms in increasing the number of export varieties. The...

This book presents the reasons for which, given the globalization brought about by the ICT revolution, both liberalism and realism are ill suited as guides for international relations. And it argues in favor of a third option: institutionalism. The liberal ideal of progress and peace, brought...

Observed trade flows provide one metric to gauge the degree of international goods market segmentation. Deviations from the law of one price provide another. New survey data on retail prices for a broad cross section of goods across 13 EU countries, compiled by Crucini, Telmer and Zachariadis...

South Korea has had a continuous engagement with significant trade, investment and security matters simultaneously in its relations with other nations. South Korea’s bilateralism with China is a part of a larger milieu which China has been constructing, that includes the Belt and Road...

The analysis of trade policy shows growing interest in various types of “standards”. While technical regulations and standards are introduced to protect the interest of consumers, they can also act as technical barriers to trade (TBT), as foreign suppliers complying with national regulations...

Today, more than 50 years after the Rome Treaty, the EU has made great strides in its’ economic integration and liberalization of movement of goods and people. International trade theory predicts deepening economic integration inside the European Union will increase regional trade and have...

The post WTO world trading system is witnessing proliferation of large number of Regional Trade Agreements (RTAs). Regionalism versus Multilateralism debate is not resolved decisively as there are divergent views on the methodology of trade liberalization. The slow pace of multilateral...

This paper estimates for 28 product groups a characteristic parameter that reflects the topological structure of its trading network. Using these estimates, it then describes how the structure of international trade has evolved during the 1980-2000 period. Thereafter, it demonstrates the...

Distinguished trade theorists maintain that a national economy cannot be uncompetitive as a whole, contrary to the frequent statements of many politicians, because a country must possess a comparative advantage in some sector according to Ricardo’s principle. In this paper the author...

This paper introduces service innovation in the proximity-concentration trade-off model of trade and FDI (Helpman, Melitz and Yeaple, 2004). The idea is that innovation will have two main effects on service firms’ choice between exports and FDI. First, innovative firms will on average have...