plausible in the literature on Customs Unions (or other regional trade agreements) may actually hold. The idea is to make …

theoretical trade models that the direction of trade is both predetermined for each good for each country and fixed. Here, we …-good, pure-exchange model with CES preferences. We compute free trade competitive equilibria, three-country non-cooperative Nash … equilibria, and customs union equilibria for randomized parameterizations, and find that trade patterns change in around 35% of …

A network/search view of international trade in differentiated products is proposed. It is shown that this view can … explain the importance of ethnic and extended family ties in trade, the success of diversified trading intermediaries such as … Japan's sogo shosha, and the ubiquity of government export promotion policies such as subsidized trade missions. …

itself to be endogenous, this paper analyzes the impact of unilateral trade liberalization by one country on its partner …'s trade policies. We find that such unilateral liberalization may induce reciprocal tariff reductions by the partner country …

The effects of Regional Trade Agreements (RTAs) are disputed. In this paper, we assess these effects using capital … when RTAs are signed between countries that already engage in high volumes of trade. Stock markets also rise more when …

The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its … implications for how nations should conduct their trade policy. For example, should import sectors with weaker comparative …

exports are classified as ordinary trade, import-and- assembly processing trade (processing firm sources and pays for imported … inputs), and pure-assembly processing trade (processing firm receives foreign inputs for free). Conducting more steps of the … countries, and inform optimal trade and development policy in the presence of trade in intermediates. Global supply networks may …

We build into a Ricardian model sectoral linkages, trade in intermediate goods, and sectoral heterogeneity in … production to quantify the trade and welfare effects from tariff changes. We also propose a new method to estimate sectoral trade … elasticities consistent with any trade model that delivers a multiplicative gravity equation. We apply our model and use our …

This paper presents numerical simulation results that suggest that China can both reduce its trade imbalance and … switching is thus a possibility for China to receive a double benefit, rebalancing trade with a welfare gain. This has … implications for present G20 discussions on finding ways to adjust global trade imbalances. Under a destination principle, imports …

Most empirical policy work requires the aggregation of policies. Trade policy aggregation exemplifies the aggregation … problem poignantly, with thousands of highly dispersed trade barriers. This paper provides methods of policy aggregation that … income by around 3 times the global gains from free trade. …