This chapter reviews the new approach to international trade based on firm heterogeneity in differentiated product markets. This approach explains a variety of features exhibited in disaggregated trade data, including the higher productivity of exporters relative to non-exporters,...

Using a gravity model, this article presents an analysis of aggregate trade flows aimed at identifying China’s impact on Latin America’s trade. The results obtained indicate that: i) China´s growth in the last years implied a growing supply of exports to this market from most countries in...

International competitiveness is often regarded as crucial for the attainment of gains from trade, which may lead policy makers to subsidize exports. This view is based on confusion between the concepts of competitive and comparative advantage. The paper argues that when comparative advantage is...

We review a recent body of theoretical work that aims to put numbers on the consequences of globalization. A unifying theme of our survey is methodological. We rely on gravity models and demonstrate how they can be used for counterfactual analysis. We highlight how various economic...

The proposed Trans-Pacific Partnership (TPP) is a free trade agreement among 12 Pacific Rim countries whose joint gross domestic products (GDPs) account for 36 percent of world GDP and whose mutual trade accounts for approximately 24 percent of world trade. As for most proposed free trade...

This paper investigates selected short- and mid-term effects in trade in goods between the Visegrad countries (V4: the Czech Republic, Hungary, Poland and the Slovak Republic) and the Republic of Korea under the framework of the Free Trade Agreement between the European Union and the Republic of...

This paper investigates causal relationships between exports, imports, and economic growth in Malawi over the period 1961-2010. These relationships are examined using the Johansen frameworks for co-integration whereas the Vector Error Correction (VECM) framework is further used to provide...

Agrifood standards impede trade by increasing compliance costs, but they can also enhance trade by signalling quality. This paper disentangles the trade costs and demand-enhancing effects of two important standards-technical barriers to trade, and sanitary and phytosanitary measures-on (i)...

This paper uses a sectoral version of the conventional Imperfect substitutes model to motivate a parsimonious estimation of trade elasticities. The elasticities we compute depend directly on the specialization of trade across sectors, which is believed to add econometric precision to our...