Will the incentives to pursue strategically motivated trade or industrial policies rise of rall if countries integrate? Economists have emphasized that one of the principal channels for welfare gains of Europe 1992 is a reduction of intra-European real trade coosts. This paper identifies the...

This paper investigates international fragmentation in a modeling framework where the multi-stage nature of industrial production is made explicitly, and where the engineering sequence of stages is juxtaposed with a sequence of increasing economic incentive for international fragmentation....

This article unifies two approaches for identifying the welfare and wage effects of immigration, one emphasizing the immigration surplus, the other stressing a potential welfare loss due to a terms-of-trade effect. We decompose the native welfare effect into a standard complementarity effect,...

World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time (intensive margin). But trade may also increase if a trading bilateral relationship is newly established between countries that have not traded with each other in the past...

This paper takes a welfare-view on eastern enlargement of the EU, focusing on incumbent countries. Enlargement is decomposed into three elements: Single-market integration on commodity markets, budgetary costs from EU-expenditure policies, and single market- induced migration from new to present...

Recent literature has argued that, contrary to the results of a seminal paper by Rose (2004), WTO membership does promote bilateral trade, at least for developed economies and if membership includes non-formal compliance. We review the literature in order to identify open issues. We then develop...

We argue that compensating losers is more difficult for immigration than for trade and capital movements. While a tax-cum-subsidy mechanism allows the government to turn the gains from trade into a Pareto improvement, the same is not true for the so-called immigration surplus, if the...