This study addresses the role of distance in a partial equilibrium model of bilateral trade and tests hypotheses in a large panel data-set of trade flows. The analysis obtains three implications regarding the empirical specification of trade frictions in gravity models. Two results illustrate...

We argue that the proper specification of a panel gravity model should include main (exporter, importer, and time) as well as time invariant exporter-by-importer (bilateral) interaction effects. In a panel of 11 APEC countries, the latter are highly significant and account for the largest part...

This paper investigates hypotheses about the determinants of trade and investment liberalisation with a particular focus on the market access and national treatment commitments under the General Agreement on Trade in Services (GATS). We set up a database of these GATS commitments and use the...

This paper assesses the determinants of European outward and inward processing trade. Thereby, it distinguishes between size, relative factor endowment, (other) cost factors and infrastructure variables. Using a large panel of bilateral processing trade flows of the EU12 countries at the...

To assess the welfare effects of bilateral versus multilateral trade and/or investment liberalisation in general equilibrium, we set up a three-country and three-factor knowledge-capital model of trade and multinational activity. Numerical simulation results indicate that multilateral...

This paper argues that the 'competitive liberalisation' of national governments of the past several decades has created a 'market' for regional economic integration agreements (EIAs). Evidence shows that countries that have selected into EIAs - such as free trade agreements - have 'chosen well'...

This paper assesses the impact of market power and multinationality in EU12 manufacturing industries on EU integration in goods trade in the 90s. An increase in the market concentration exhibits a positive impact on bilateral exports, while an increase in multinationality works in the opposite...