answer these questions by (i) summarizing the empirical findings on trade and growth linkages and by (ii) investigating to … trade spurs growth and industrialization, or whether it is economic growth that enables trade to increase. The implicit ….e. learning through trade generally or exports or imports specifically) or internal (i.e. through human and physical capital …

Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between … dimensions of distance affect exports and FDI differently. There is clear evidence of a proximity-concentration trade-off in … positive relation between import tariffs and FDI intensity provides further evidence for a trade-off resulting from trade costs …

How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation … that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to the effect … of currency unions on international trade. While we estimate that currency unions are associated with a trade increase of …