This paper introduces a novel mechanism by emphasizing benefits for firms through participation in buyer networks among firms that source the same locally produced inputs. In a first step, we utilize register-based data from Denmark to generate a firm-specific buyer network variable which relies...

In 2011, the American Economic Association (AEA) changed its peer review policy for all their journals, shifting from a double-blind process to a single-blind peer-review process. Under this new system, referees became aware of the authors' identities. In this paper, I explore whether this...

The new US administration has a clear agenda of reducing imports to the US and attract FDI by reducing tariffs and using the proceeds for supporting investment in the US. This paper uses a dynamic two country US vs RoW model where monopolistically competitive firms make export and FDI decisions....

So-called "connector" countries have been argued to benefit from the US-China trade tensions, given their rising share in US imports. This paper draws an important distinction between trade reallocation-countries increase domestic production to substitute for declining Chinese exports to the...

We explore the impact of export quality on the levels of exports and domestic trade. First, we developed a theoretical framework, using the two-country oligopolistic model with quality differentials in product. We find that a consumer-preference driven increase in export quality improves export...

In 2018 and 2019, the US administration increased tariffs on imports from China. Did these tariffs lead to more US imports from other countries such as Mexico? Using highly disaggregated data on the universe of Mexican firm-level exports, we find evidence of trade diversion from China to Mexico....

Peter Neary, a master of the understanding of international trade, and an international leader in the organization of the economics profession, is generally regarded as the greatest Irish economist of modern times. Known for the elegant rigour and precision with which he presented the arguments...

We study how demand uncertainty affects risk-neutral firms. number of export destinations when uncertainty is resolved after firms choose their export destinations and output. We show that firms’ ability to allocate their output across destinations in response to destination-specific shock...

This paper investigates the determinants of comparative advantage in Artificial Intelligence (AI)-intensive industries using a comprehensive dataset of US imports from 68 countries across 79 manufacturing and service industries over the period 1999–2019. Using a novel measure of AI intensity...

We study how demand uncertainty affects risk-neutral firms' number of export destinations when uncertainty is resolved after firms choose their export destinations and output. We show that firms' ability to allocate their output across destinations in response to destination-specific shock...

We examine how tariffs affect sectoral composition and welfare in an economy with nonhomothetic preferences and sectors being complements---key drivers of structural change. Beyond their conventional role in trade protection, tariffs influence industrial structure by altering relative prices and...

We develop a two-country model of international trade featuring non-homothetic preferences and income inequality, generating a price schedule where cheap necessities coexist with expensive luxury goods. A central mechanism driving price differences is firm's ability to shift fixed costs between...

The aim of the article is to show that although most countries in the Global South have been able to reduce absolute poverty, with a few exceptions they have not succeeded in catching up with the countries of the Global North. The conclusion of the article is that, especially after the...

According to the general consensus in academia, Ricardo's theory of international trade embodies the theory of comparative advantage. The principle of comparative advantage he proposed, based on the model of physical trade and employing comparative cost analysis, holds that comparative advantage...

This paper reveals significant errors in a key variable in international trade: tariff rates. The issues arise from incomplete reporting, leading to measurement error from false interpolation by the data provider, the World Integrated Trade Solution (WITS), and selection bias from dropping...

This paper investigates the role of firm heterogeneity in environmentally extended new trade models, contrasting Eaton-Kortum and Melitz models to Armington and Krugman models. We show that when emissions per sales are constant across firms -- a standard assumption in the literature -- all four...

Based on the sufficient statistics approach developed by Huang and Ottaviano (2024), we show how the state of technology of European industries relative to the rest of the world can be empirically assessed in a way that is simple in terms of computation, parsimonious in terms of data...

Based on the sufficient statistics approach developed by Huang and Ottaviano (2024), we show how the state of technology of European industries relative to the rest of the world can be empirically assessed in a way that is simple in terms of computation, parsimonious in terms of data...