One of the most successful empirical relationships in international trade is the gravity equation, which relates … bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristics, and destination … equation is log linear, whereas aggregation involves summing the level rather than the log level of trade flows. In this paper …

trade shocks across CZs, but miss around half of the aggregate effect, partly due to the offsetting action of indirect …

Common wisdom dictates that uncertainty impedes trade--we show that uncertainty can fuel more trade in a simple general … equilibrium trade model with information frictions. In equilibrium, increases in uncertainty increase both the mean and the … variance in returns to exporting implying that trade can increase or decrease with uncertainty depending on preferences. Under …

Why did per capita income divergence occur so dramatically during the 19th Century, rather than at the outset of the … answer these questions, this paper develops a trade-and-growth model that captures the key features of the Industrial … includes both endogenous biased technological change and intercontinental trade. An Industrial Revolution begins as a sequence …

This paper presents new evidence on international trade and worker outcomes. It examines a big world event that … studies the impact of trade on wages and worker training. Wages and training fell for workers employed in sectors where the … intermediate imports. This provides new direct evidence that, in the modern world of global value chains, it is changes in the cost …

progress and trade barriers in shaping the worldwide diffusion of a new, highly traded good: the automobile. We scrape … diffusion model with CES preferences and non-unitary income elasticity shows that 62% of the gap in diffusion levels between the … U.S. and the rest of the world is due to price frictions such as markups, tariffs, and trade costs, while the remaining …

We provide a unified framework for measuring bilateral exports of value added. We outline a general methodology that … in exports), to which we refer as VAX-C and VAX-D, respectively. In addition we suggest a novel third measure, VAX …

How does international trade affect the popularity of governments and leaders? We provide the first large … response of political preferences to trade shocks. Using a unique data set including 118 countries and nearly 450 …,000 individuals, we find that growth in high skill intensive exports (of goods and services) increases approval of the leader and …

openness. We analyze two channels through which the spread of new ideas occurs: international trade and the activity of … equilibrium models that treat productivities as Fréchet random variables--as in the model of trade in Eaton and Kortum (2002) (EK …). We present models in the literature that extend the EK model of trade to innovation, diffusion, and multinational firms …

We use Belgian data with information on domestic firm-to-firm sales and foreign trade transactions to study how … international trade affects firms' unit cost and the consumer's real wage. We show theoretically that the gains from trade depend on …