The resilience of global value chains has been put to the test by the COVID-19 pandemic, extreme weather events, and trade tensions spurred by growing economic nationalism and protectionism. Shocks in production and trade can be transmitted from one country to another by global value chains,...

The war in Ukraine is a human tragedy for the people of Ukraine, but its economic implications are global. This instant report focuses on the direct impact of the war on world trade and investment. It identifies five trade and investment channels through which countries will be affected by the...

Global value chains (GVCs) have shaped the dynamics of globalisation in recent years. This paper reviews key concepts and tools to measure countries’ involvement in GVCs, explores recent trends and investigates the underlying drivers of GVC participation empirically. The analysis in the paper...

A global bazaar is a marketplace where small, independent enterprises buy and sell a wide range of goods globally and directly, without relying on a centralized mediator. Typical examples of global bazaars are the Yiwu Market (officially the "International Trade City") in southeast China and the...

The conventional immigration and trade literature regards immigrants as mediators for informal barriers such as institutional and cultural differences. However, this notion neglects network effects stemming from short visits. This paper investigates the ways in which international student...

COVID-19, a novel Coronavirus SARS-CoV-2, has wreaked havoc on global financial markets, economies, and societies. For example, this study looks at the impact of COVID-19 on the Chinese economy and its policy responses (fiscal, monetary, and institutional). This study also examines future...

This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organized in a series of stylized facts, which...

This paper develops a model of used vehicle trade between countries with different environmental regulations regarding vehicle emissions. We show that the US, given its strict environmental regulations, has incentives to export used vehicles to Mexico, which impacts air pollution emissions...

The impact of the COVID-19 pandemic has been detrimental to all countries, despite the continuous efforts of governments on all continents to attempt to mitigate its damaging effects. All economic and social indicators have worsened. This study explores the impact of COVID-19 on international...

We propose a new market design for trading financial assets. The design combines three elements: (1) Orders are downward-sloping linear demand curves with quantities expressed as flows; (2) Markets clear in discrete time using uniform-price batch auctions; (3) Traders may submit orders for...

On the eve of its 60th anniversary, the gravity model of trade is a "celebrity", due to its intuitive appeal, solid theoretical foundations, and remarkable empirical success. Yet, many economists still view gravity simply as an intuitive but naive reduced-form estimating equation and apply it...

In this note, we review recent data concerning Russia's economic integration with other countries. We first analyze the general picture of Russia's economic integration with the rest of the world and the importance of foreign economic relations for the country. We then turn to China, an...

Der Ukraine-Krieg belastet durch das Emporschnellen der Energiepreise und den Produktionsstopp in wichtigen ukrainischen Zulieferbetrieben unmittelbar die wirtschaftliche Aktivität in Deutschland. Daher werden zwei Szenarien prognostiziert, die die kriegs- und sanktionsbedingten Unsicherheiten...

We examine the impact of the COVID-19 pandemic on Kenya's foreign trade using quarterly trade data for the period 2019 to the second quarter of 2021. The exploratory analysis shows that growth of Kenya's merchandise exports remained resilient, largely supported by traditional exports of tea and...

Illicit financial flows have recently attracted the attention of academia, practitioners, and multilateral organizations who consider them harmful to economic development. Some observers suggest that many of these flows occur via the misinvoicing of international trade transactions. This study...

In this paper, we estimated the standard (macro-economic) import equation over the period 1995-2021Q2, using an import intensity-adjusted measure of aggregate demand (IAD) calculated from input-output tables at country level, and compared the results with regressions using GDP. Initially...

This paper introduces finance or credit in the Dixit-Stiglitz-Krugman (DSK) model of international trade. It identifies mechanisms by which finance can affect the main results of the conventional model. The key results are as follows. Perfect credit market does not affect number of varieties or...

This paper, using a long-term, product-level cross-country dataset, analyzes the trade-growth nexus by introducing two novel indicators able to capture demand and supply attributes of countries' quality of specialization. The Keynesian efficiency index measures demand attractiveness of the...

The resilience of global value chains has been put to the test by the COVID-19 pandemic, extreme weather events, and trade tensions spurred by growing economic nationalism and protectionism. Shocks in production and trade can be transmitted from one country to another by global value chains,...

The war in Ukraine is a human tragedy for the people of Ukraine, but its economic implications are global. This instant report focuses on the direct impact of the war on world trade and investment. It identifies five trade and investment channels through which countries will be affected by the...

How does trade policy affect exporters' ability to respond to foreign demand shocks Faced with a sudden change in the demand for their goods, exporting firms must optimally change their inputs and/or input sources. This paper tests whether a country's own trade policy makes such adjustments...

Recent scholarship contends that ancient Mediterranean economies grew intensively, contrary to standard Malthusian predictions. An explanation is Smithian growth spurred by reductions in transaction costs and increased trade flows. This paper argues that an ancient Greek institution, proxenia,...

Technological advance and improvements in communication technologies have facilitated the offshoring of jobs worldwide, where a typical scene following the supply chain involves developing countries importing finished products from developed countries that contain developing country labor...

Uncertainty shocks have been shown to affect the real economy, but uncertainty remains about their trade effects and whether effects are similar across different types of uncertainty. We investigate how global economic, financial, and trade policy uncertainty affect the trade flows of the seven...

We examine the role of demand composition in explaining the trade collapse and recovery during the ongoing covid-19 crisis. We apply an import-intensity-adjusted measure of demand to examineimport trends in 40 advanced and emerging economies over the period 1Q95 to 4Q20. We focus on the crisis...

There is a broad consensus among US opinion leaders that our economic problem is largely one of failures of international competition -- that trade deficits have eroded our manufacturing base, that inability to sell on world markets has been a major drag on economic growth, and that imports from...

Eastern European countries have experienced sharp declines in real GDP since 1990. One of the reasons for this decline is the Soviet trade shock, deriving from the collapse of the CMEA and of traditional export markets in the Soviet Union. This paper is an attempt to quantify the magnitude of...

Trade openness is considered a medium for economic growth. Economic theory supports the assertion that trade enhances competition, promotes large market, transfers of technology which then propels economic growth. In recent times, developing countries have embraced trade liberalization as a...

A narrative of popular discontent against open trade has taken hold, and politicians on both the left and the right have reacted by taking aim at trade agreements and proclaiming their support for economic nationalism. This is both bad policy and a misreading of the views of most Americans....

This paper investigates the theory and evidence that history plays a role in shaping the direction of international trade. Because there are reasons to anticipate a positive correlation between the predominant direction of trade flows in the past and membership in preferential arrangements in...

Do scale economies contribute to our understanding of international trade? Do international trade flows encode information about the extent of scale economies? To answer these questions we examine the large class of general equilibrium theories that imply Helpman-Krugman variants of the Vanek...