Two seemingly unconnected empirical results suggest an intriguing mechanism. First, economic integration helps harmonize prices internationally, with trade being the primary channel (Rogoff 1996, Goldberg and Knetter 1997). Second, monetary union may greatly increase the amount of trade among...

This paper reviews reassesses the methodology and principal findings of the “Rose effect”, i.e. the trade effects of currency union, looking at both EMU and non-EMU currency unions. The consensus estimate suggests that the euro has already boosted intra-euro area trade by five to ten...

This paper argues that the stark contrast between the ease of regional liberalisation and the glacial pace of GATT talks does not reflect a GATT failure or the US's conversion from devoted multilateralist to ardent regionalist. GATT Rounds have always been long, have always been slow and have...

With this Handbook, Miroslav Jovanović has provided readers with both an excellent stand-alone original reference book as well as the first volume in a comprehensive three-volume set. This introduction into a rich and expanding academic and practical world of international economic...

type="main" <title type="main">ABSTRACT</title> <p>The factors responsible for the spatial reorganization of contemporary manufacturing are presented here and the predictive power of long-standing notions of comparative advantage revisited. While a growing number of commercial tasks and technologies are in principle mobile...</p>

Governments frequently intervene to support domestic industries, but a surprising amount of this support goes to ailing sectors. We explain this with a lobbying model that allows for entry and sunk costs. Specifically, policy is influenced by pressure groups that incur lobbying expenses to...