We study the effect of international trade and freeness of trade on interregional inequality within countries. We … estimate a model derived from a structural economic geography approach where interregional inequality depends on weighted trade … shares and trade costs and where we can derive an aggregate freeness of trade measure. These measures are instrumented based …

firms. Whereas trade does not affect the firm-internal assignment of workers to tasks, it reduces the range of tasks … minimum wage. In this case trade leads to higher per-capita income for both skill types and thus to higher welfare in the open …

We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard … trade liberalization. While the former leads to more dispersion of economic activity across space, the latter tends to drive …

Krugman's (1979, 1980) monoplistic competition model of trade showed that countries with more similar per-capita GDP … trade more with each other. Does this mean that developing countries shift trade towards developed countries as a result of … high economic growth? The results reported in this paper challenge the link between per-capita GDP and trade predicted by …