This paper reexamines the trade creation effects of migration using a large sample of 180 countries from 1995 to 2023. We estimate a structural gravity model of bilateral trade augmented with migration stocks, investigating whether immigration to OECD countries relates to the extensive and...

This paper shows that immigrants not only have differential effects on trade based on their skill levels but that they play an additional role in facilitating bilateral trade if their origin country has a higher level of corruption and weaker institutions. Using immigrant stock across skill...

We implement an instrumental-variable Poisson pseudo-maximum likelihood estimator with high-dimensional fixed effects (IV-PPML-HDFE). To correct for incidental parameter bias, we use a split-panel jackknife (SPJ) routine with bootstrapped standard errors. Monte Carlo simulations across the three...

This paper explores the estimation of interregional trade as a lens through which to assess the broader dynamics of economic integration, with a particular emphasis on the persistent "border effect" in the European Union (EU). Although regional integration is intended to foster seamless economic...

The inclusion of domestic (intra-national) trade when estimating structural gravity models is an important topic and has been shown to solve empirical puzzles such as the missing globalization puzzle (Yotov, 2022). Despite efforts to construct intra-national trade data, its measurement still...

Campos et al. (2021) (Economics Letters) show that including domestic trade flows in the gravity model is important for estimating the effect of trade agreements (TAs), regardless of how these flows are measured. Without domestic trade flows, TA effects are small, negative, and statistically...

Using a state of the art structural gravity model, we investigate the impact of various (post-)colonial cocoa trading arrangements on the cocoa trade between developing cocoa producer countries and rich industrial cocoa consumer nations in the time period 1951 to 1999. We find that in particular...

We use heterogeneity-robust difference-in-differences (DiD) methods to evaluate the impact of membership in the European Union (EU) Single Market on international trade. On the policy front, we provide evidence that: (i) On average, the EU has been very effective in promoting trade among its...

Environmentally friendly goods and techniques such are essential for the transition to a greener economy. Trade policy can help support the global diffusion of these goods and technologies by removing barriers to trade, lowering the cost of the green transition for consumers, firms, and...

This study investigates how Chinese ownership in European ports affects trade flows between China and Eurozone countries, set against the backdrop of recent global economic disruptions that have emphasized the crucial role of maritime trade and port efficiency. An augmented gravity model was...

International migrants choose their country of residence to maximize their utility. As a result, their choices are informative about the relative attractiveness of countries. This paper explains why Spain became the fourth most attractive country in the world for international migrants in the...

Enhancing digital connectivity, advancing cross-border e-commerce (CE), and optimizing logistics performance (LP) are fundamental pillars for boosting trade flows between trading partners. However, the multifaceted impacts of digitalization, CE, and LP on China-Africa (C-A) trade remain...

This study examines two key challenges in services trade research: the reliability of trade data and the measurement of non-tariff barriers, particularly the Services Trade Restrictiveness Index (STRI). Using firm-level panel data from Türkiye with fixed effects, we show that international data...

Integration into global markets serves as a powerful catalyst for economic growth in developing economies, offering the potential to create high paying jobs and foster development. This paper uses the structural gravity model to quantify potential merchandise exports for Asian economies,...

Access to critical raw materials (CRMs) is increasingly being shaped by geopolitical dynamics, fuelling a global competition for supply security. This paper applies the gravity model of trade to examine how OECD countries leverage Aid for Trade (AfT), Bilateral Investment Treaties (BITs), and...

This study investigates the determinants of regional value chains (RVCs) in African countries using gravity model analysis. This approach allows for bilateral characteristics of the gravity model and gives room for introducing policy variables in the augmented version. To that effect, RVCs were...

Countries routinely participate in intergovernmental forums such as the G7, G20, BRICS, and MIKTA. These informal institutions—unlike formal bodies such as the EU and WTO—lack permanent administrative structures, operate through rotating presidencies, and do not issue legally binding...

Motivated by current events, this paper assesses the impact of tariff increases on bilateral greenfield foreign direct investment (FDI) over the period 2016-2023. Leveraging a comprehensive dataset of announced greenfield investment projects, official FDI statistics, and bilateral product-level...

This study develops a multidimensional Geoeconomic Fragmentation (GEF) Index and applies structural gravity modeling to quantify how rising geopolitical tensions, sanctions, and supplychain disruptions reshape ASEAN and Philippine commodity trade. Using dyad-product-year data (2000-2024), the...

Ninety-five percent of Kenyan coffee is exported as green coffee in the international market in Europe. As a spot market, this presents a problem in that the currency of the foreign market differs from that of the domestic country (Kenya), resulting in an exchange rate problem. Kenya has a...

Our investigation, bolstered by the robust gravity trade model and panel data econometric technique, underscores the pivotal factors that influence trade interactions between Saudi Arabia and the BRICS nations - Brazil, Russia, India, China, and South Africa. The study, spanning from 1998 to...

This study seeks to analyze the impact of land reform on the export performance of tobacco, since the cash crop is a major foreign currency earner for Zimbabwe. A gravity model was adopted for the study using secondary panel data from 1992 to 2018. The findings show that 17.2% of the explanatory...

The gravity model, which is applied to international trade, explains the conceptual models of international business. It has been used in various areas of the global economy, such as trade, foreign direct investment, and even the determinants of tourist demand at the level of countries and...

The nominal effective exchange rate (EER) of a currency is an index of the tradeweighted average of its bilateral exchange rates vis-à-vis the currencies of selected trading partners, while the real EER is derived by adjusting the nominal index for relative prices or costs. The nominal EER...

Over the past twenty years, China has become the world's largest trading nation and a significant trading partner for most countries. Despite these important links, concerns regarding China's commercial and diplomatic goals persist due to its unique state-centric economic structure. This paper...

Trade is considered one of the main drivers of a country's economic growth and development. Therefore, a successful analysis that identifies the bilateral trade flows, their determinants, and the regional integration costs and benefits opens new horizons for international trade perspectives....

The availability and composition of labor is fundamental for the structure of international trade. This points towards the importance of demographic transitions that affect trade through, for example, changing capital-labor ratios, urbanization dynamics, or changes in the composition of demand...

This paper examines the impact of Brexit on international student migration. In a structural gravity model, we estimate student migration between 69 countries for counterfactual scenarios in which the United Kingdom leaves the European Union one year before the referendum. This exercise reveals...

We investigate the effects of US-imposed trade sanctions on the global trade patterns of sanctioned countries by employing a gravity model that incorporates data spanning from 1980 to 2020 across 79 nations. The results reveal that both partial and complete US sanctions lead to significant...