To estimate correctly the effect of variable trade costs on firms’ exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that...

This book sets out how much aid OECD countries are already providing towards trade-related activities in developing countries and reviews the effectiveness of existing programs. It argues that reinforcing mutual accountability at the local level, together with a global review mechanism, would...