In an increasingly integrated world with declining trade barriers, environmental regulations can have a decisive role in shaping countries' comparative advantages. The conventional wisdom about environmental protection is that it comes at an additional cost on firms imposed by the government,...

Since Jan Tinberben's original formulation (Tinbergen 1962), the empirical analysis of bilateral trade flows through the estimation of a gravity equation has gone a long way. It has acquired a solid reputation of good fitting; it gained respected micro foundations that allowed it to move to a...