Top Research Papers on International Trade

We provide a review of the recent literature – both theoretical and empirical – analyzing the multi-dimensional connections between globalization and innovation. We develop a model that features many of those mechanisms that connect trade and innovation. It features the joint selection of firms into innovation and international market participation (in our model, we restrict that participation to exports). Our model also highlights how exposure to international markets affects the incentives for innovation. ✩ We thank Sina Ates, Elhanan Helpman, Ezra Oberfield

Politicians frequently issue public threats to manipulate tariffs but only sometimes follow through. This behavior theoretically ought to generate audience costs. We therefore test the validity of audience costs in trade war settings through a vignette-based survey experiment. The vignettes describe a hypothetical situation involving the U.S. and a second country (China, Canada, or unspecified) with whom the U.S. has a trade deficit. The president (Democrat, Republican, or unspecified) either maintains the status quo, threatens to impose tariffs and backs down, or threatens to impose tariffs a...

The electronic environment of the Internet is considered one of the most modern means of concluding contracts and fulfilling the obligations arising from them, especially in the field of commercial transactions. The nature of electronic contracts in relation to their validity, form, and conformity with the general rules and regulations of civil law regarding contracts is one of the new debates, the understanding and examination of which relations and legal effects arise from it, depend on the formal structure of the electronic environment and the concepts of communication technology recognized...

We study the effects of international trade on the oligopsony power of firms in input markets. We build a theoretical model of international trade in which firms are oligopolists in the market for final goods and oligopsonists in the market for inputs. Consistent with evidence from the literature, firms' markups over unit costs rise with the level of oligopsony power and of oligopoly power. While trade liberalization decreases market power in one market, it has the opposite effect in the other. In particular, international competition between oligopolists in final goods markets causes oligopso...

The development of international trade theory has experienced two main stages: traditional international trade theory and new international trade theory.New international trade theory rises with the development of economic theory,it constantly introduces new economic concepts into the eld of international trade research,explains the causes of the emergence and development of international trade from the perspective of depth,and greatly promotes the development of international trade theory research.Since the end of the Second World War,the pattern of international trade has not been divided,w...

International transactions are riskier than domestic transactions for several reasons, including, but not limited to, geographical distance, longer shipping times, greater informational frictions, contract enforcement, and dispute resolution problems. Such risks stem, fundamentally, from a timing mismatch between payment and delivery in business transactions. Trade finance plays a critical role in bridging the gap, thereby overcoming greater risks inherent in international trade. It is thus even described as the lifeline of international trade, because more than 90% of international transactio...

: We analyse the likely trade effects of the Trade and Cooperation Agreement (TCA), which defines the post-Brexit trading environment between the United Kingdom (UK) and the European Union (EU). We apply a computable general equilibrium model and focus on trade in value added rather than just the gross values of exports and imports. We describe the TCA and estimate its effects on the costs of conducting UK–EU trade, including various non-tariff barriers in both goods and services. We suggest that the TCA will reduce UK trade significantly: total exports by around 7 per cent and imports by arou...

Modern theoretical and empirical analyses in international trade typically focus on firms as the sole trading actors. This is consistent with the fact that firms have traditionally accounted for the vast majority of trade and, hence, examining their behavior allows for fully characterizing trade margins and assessing their determinants. Emerging and rapidly growing trade modalities such as cross-border e-commerce have started to change this by making it easier for individuals to directly engage in international sales and purchases. However, to what extent and how consumers directly participate...

Evidence suggests that sovereign defaults disrupt international trade. As a consequence, countries that are more open have more to lose from a sovereign default and are less inclined to renege on their debt. In turn, lenders should trust more open countries and charge them with lower interest rate. As a consequence of those lower rates, the country should also borrow more debt as it gets more open. This paper formalizes this idea in a sovereign debt model á la (Eaton and Gersovitz in Rev Econ Stud 48(2):289–309, 1981), proves these theoretical relations and quantifies them in a calibrated mode...

This chapter surveys the empirical literature on the effects of foreign trade on political-military conflict. There have been three “waves” of work on this topic since 1980. It is argued that the most recent wave differs from earlier waves in various important respects. First, it has made significant headway in addressing the causal mechanisms underlying the relationship between trade and conflict. Second, this wave has addressed a wider variety of aspects of trade, including trade policy and trade agreements. Third, a variety of recent studies have shed new light on the effects of trade on th...

The primary purpose of this study is to facilitate Pakistan in trade facilitation to improve trade efficiency and to promote the better development of foreign trade of Pakistan based on a comparative analysis with other nations. To better promote Pakistan’s foreign trade and to understand the impact of trade facilitation and trade costs on Pakistan’s foreign trade, this study uses the gravity model to analyze trade facilitation on Pakistan’s foreign trade. It discusses the intermediary effect of trade cost. After the study, the main conclusions are as follows: (1) Pakistan’s Trade Facilitation...

Trade sanctions are a common instrument of diplomatic retaliation. To guide current and future policy, we ask: What is the most cost-efficient way to impose trade sanctions against Russia? To answer this question, we build a quantitative model of international trade with input-output connections. Sanctioning countries simultaneously choose import tariffs to maximize their income and to minimize Russia’s income, with different weights placed on these objectives. We find, first, that for countries with a small willingness to pay for sanctions against Russia, the most cost-efficient sanction is a...

Introduction 1. Trade and Environment within the GATT 2. The WTO Side Agreements 3. Genetically Modified Organisms 4. WTO Side Agreements (2) 5. Trade and the Environment Within the EC 6. Investor Protection and Environmental Regulation (1) 7. Investor Protection and Environmental Regulation (20) 8. Multinational Corporations and Environmental Liability 9. Multinational Corporations and Environmental Liability (2) 10. Actions Against Multinational Corporations 11. Alternative Approaches to Transnational Pollution

The research purposes is to determine the effect of international trade in the era of globalization in Indonesia. This research used an approach that involves descriptive and qualitative analysis. International trade is the exchange of goods and services involving economic subjects between economic subjects from a country and economic subjects from other countries. Globalization has resulted in significant growth in international trade by reducing tariff and non-tariff barriers, thereby facilitating the free flow of goods and services around the world. This led to a rapid increase in the total...

Grain is the material basis for human survival and development, wheat is one of the three significant grains, and the robustness of the wheat trade has seriously affected world grain security. In the article, we analyze the robustness of the International Wheat Trade Network (IWTN) from three perspectives: global, regional, and national. We quantify the topological properties and evolution characteristics of IWTN from 1987 to 2020, and analyze the stability of IWTN using random attacks and target attacks. The import satisfaction of major wheat trading countries and trade communities is quantif...

This paper provides a basis for China to strengthen its own DED, deepen international exchanges and cooperation, guide enterprises’ transformation and upgrading, and improve their competitiveness and anti-risk capability.

The war in Ukraine has impacted the trade rebound from the COVID-19 pandemic; the war has also affected food supplies, which has spurred a global food crisis. The growth in global trade in goods and services slowed in early 2023 after reaching a historical high in 2022. Maritime costs remain elevated due to continued shipping capacity shortages, underpinning the higher prices of imported goods. High food and fertiliser prices, currency depreciations against the United States dollar and export restrictions have also affected food supplies worldwide. The Black Sea Grain Initiative helped to resu...

We study the impact of international trade on a firm’s technology choice in an infinite-horizon model. Banks engage in oligopolistic competition in providing capital for the manufacturing sector. Manufacturing firms also engage in oligopolistic competition and choose technologies with different levels of fixed and marginal costs. In the steady state, firms in a country with a larger market size or a more efficient financial sector choose more advanced technologies, and this country has a higher capital stock. The opening of international trade leads manufacturing firms to choose more advanced ...

International trade separates consumption of goods from related environmental impacts, including greenhouse gas emissions from agriculture and land-use change (together referred to as “land-use emissions”). Through use of new emissions estimates and a multiregional input-output model, we evaluated land-use emissions embodied in global trade from 2004 to 2017. Annually, 27% of land-use emissions and 22% of agricultural land are related to agricultural products ultimately consumed in a different region from where they were produced. Roughly three-quarters of embodied emissions are from land-use ...

In terms of the volume of coffee is the second largest commodity traded in international trade and one of the most valuable globally traded agricultural commodities in human history. In addition, coffee is one of the most widely consumed beverages globally. In this way, it has a significant impact on millions of people worldwide, from farmers to consumers. The results show that the global coffee trade has grown steadily since 2000. In addition, the number of scientific publications in coffee is also growing exponentially. This article aims to collect and process the literature related to coffe...

For decades, the international community has targeted North Korea with economic sanctions, seeking not only to keep the nuclear bomb out of North Korean hands but also to potentially bring about regime change and weaken its military. However, many in the academic and policy communities have labeled the North Korean sanctions regime a failure as none of these goals have been achieved. Why has North Korea been able to evade the pressure of international sanctions more effectively than other targets, such as Iran and Myanmar? Recent scholarship argues that the answer is largely that North Korean ...

Logistics systems are inexplicably linked to trade and investment, and their significance in describing a country’s competitiveness in an increasingly globalized world is growing. Improved trade logistics, in conjunction by a way of more economic liberalization climate, increased volume and size of trade, as well as reach in distribution and production activities. With careful reviews, the study discussed a metasynthesis of trade logistics influence on international trade where about twenty-two papers across publishers were analyzed to observe their findings. According to several reports, the ...

It is found that provisions related to antidumping, competition policy, technical barriers to trade, and trade facilitation are associated with enhancing the trade-increasing effect of trade agreements.

This working paper analyzes the impact of infrastructure and trade facilitation on imports and exports in five Central Asian countries and outlines how improving hard and soft infrastructure would help boost regional trade and integration. Focusing on Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan, it analyzes how faster border crossing and cargo transport times affect trade flows with neighboring Central Asia Regional Economic Cooperation (CAREC) program countries. It recommends Central Asian countries cooperate to diversify transport to include rail, bolster digita...

Abstract International trade appears to be strongly dependent on the political environment and institutional arrangements. In this context, the commented strand of economics is expected to follow the relationships that can be turbulent. The paper reviews the available literature on international trade, with a particular focus on aspects of the political economy. These threads are described in the context of the past and present literature, as well as prospects for future research. Over the decades, the focus of the debate has shifted strongly. The analysed issues reflect not only current event...

A ‘smart city’ is a buzz term and concept. The ‘smart city’ has mainly been discussed in the scholarly literature on urban planning, architecture, and geography. While the ‘smart city’ has been under-analyzed in international trade law, the term ‘smart city’ is commonly used in Asian trade policies. The Association of Southeast Asian Nations (ASEAN) established the ‘ASEAN Smart Cities Network’ and the ‘smart city’ is now an important market opportunity for exporting smart technologies and services to ASEAN. Against this backdrop, this article addresses how smart cities can be regulated and g...

We develop a model of the international trade and macroeconomic dynamics triggered by the imposition of financial and/or trade sanctions. We begin with a tractable two-country model in which one of the countries (Foreign) has an advantage in production of a commodity, interpreted as gas. Both countries use gas as input in production of di ↵ erentiated consumption goods, but Home supplements its domestic production of gas with imports from Foreign to meet domestic and Foreign demand of final goods. There is endogenous producer entry in each country’s consumption sector, and fixed trade costs imply...

There are two broad themes in the theory of international trade. One is qualitative, being concerned with the pattern of trade, i.e. which country will export which good. The standard theory relates this to comparative advantage, i.e. to international differences in relative opportunity costs, and then tries to explain comparative advantage in terms of differences in technologies, factor supplies, etc. This theme is also concerned with the way in which trade in return affects such determinants of comparative advantage. The other theme is more quantitative, and seeks to explain the terms of tra...

As increasing number of languages are introduced through neural machine learning, there is a decreased need to comprehend the language of another country, which in turn, have significant impact on all three variations of international trade.

The structure of the international trade hypergraph consisting of triangular hyperedges representing the exporter–importer–product relationship is studied and the power of the hypergraph approach in the study of real-world complex systems is demonstrated and a theoretical framework is offered.

Trade statistics are widely used in studies and policymaking focused on economic interdependence. Yet, researchers in International Relations (IR) have largely disregarded half the data available to study trade. Bilateral trade flows are usually recorded twice: by the sending economy as an export and by the receiving one as an import. These two values should match, but discrepancies between them tend to be large and pervasive. Most studies ignore this issue, which we label the “mirror problem” for short, by using only one entry. However, it is not self-evident which one is consistently most ...

The dynamic development of service activities in the world has led to their increasing contribution to the overall economic and social development. The service sector has become the driving force of economic development in most countries and the most dynamic component of international trade. The service sector participates with over 60% in the gross national income of the world economy. While the number of employees in industry and agriculture is rapidly declining, in most developed countries employment in services exceeds 80%. The shift towards services is attributed to the growth of living s...

Abstract There have been experiences of a declining interest in trade logistics and international trade research in the practitioners’ communities. The body of research on its development appears fragmented owing to several and continuous progressive areas which covered many fields. From the transport and logistics management perspective, this systematic literature review (SLR) aims at ascertaining the focus of researches between 1999 and 2019 on some specific aspects of the current study as well as evaluating the methodologies adopted for such previous studies and how the future studies can b...

As an important aspect of globalization, FDI (Foreign Direct Investment) has always been an important topic that cannot be overlooked in international trade theory. Based on the classical theory, this paper sorts out many outstanding studies on FDI. Research suggests that the main incentives for companies’ different forms of foreign investment are different. Among them, horizontal FDI is a trade-off between trade costs and the fixed costs of factory construction, while the main purpose of vertical FDI is to reduce production costs by cashing in on the comparative advantages of different countr...

Purpose: This research aims to analyze the impact of trade shocks on overall international trade relations.   The theoretical framework: of this paper comes from the fact that in recent years, the global economy has witnessed many trade shocks, whether caused by trade disputes between major economies, military disputes, or just crises in the supply of crude oi.   Methodology: The research relied on the analytical descriptive method.   Findings: The research concluded with a set of conclusions, the most prominent of which was that trade shocks do not necessarily result from the req...

Lockdowns and more generally restrictions introduced by governments during the Covid-19 pandemic contributed to the disruption of international trade in goods. We show that bilateral trade declined more when lockdowns were initially introduced in Spring 2020 with a higher degree of stringency. Moreover, the quantitative impact of lockdowns on trade weakened in the second half of 2020. This is especially the case of lockdowns implemented in the exporting country, which have little or no significant impact on trade in the second half of 2020.

As consumers in countries around the world become increasingly aware of and sensitive to the products that their foreign counterparts consume, a natural question is what predictions do classic trade frameworks hold when incorporating social comparison-based preferences? We analyze this question in a general equilibrium framework for a two-country, two-good world, in which the gap between domestic and foreign consumption of a product can enter into the representative consumer's utility function. We consider nine exhaustive social comparison scenarios, which differ based upon the combination and...

We explore the effects of international trade in goods and emission permits on global warming and welfare in a two-country, two-good, general-equilibrium model with both Ricardian and Heckscher-Ohlin features. According to our findings, international commodity trading cannot successfully reduce greenhouse-gas (GHG) emissions if the comparative advantage stems from differences in per-capita emission allowances; however, it may reduce emissions if the comparative advantage is also based on differences in technologies. International emissions trading cannot mitigate global warming. Whether it imp...

This paper studies the effect of being landlocked on international trade flows in the manufacturing sector. The study overcomes the empirical challenge of using a country‐specific variable ‘landlocked’, within a structural gravity framework in the presence of importer and exporter fixed effects. Results show that the impact of being landlocked for manufactured goods trade is highly negative and statistically significant. Such effect is higher for low‐income landlocked countries compared to high‐income landlocked countries. The impact of being landlocked on manufactured goods trade declined in ...

This study meticulously explores the intricate dynamics of Cameroon's trade policies, aiming to elucidate their current state, identify significant challenges, and propose strategic enhancements for more robust economic integration and growth. Against the backdrop of a globalized economy, Cameroon's trade policies play a crucial role in shaping its economic landscape. The research employed qualitative methodologies, including an extensive literature review of works published by various authors on the topic, to garner a comprehensive understanding of the policy environment. The findings reveal ...

This study analyzes the impacts of free trade agreements (FTAs) on bilateral trade, focusing on Japan’s FTAs. In particular, we examined both static and dynamic effects at the aggregated and disaggregated levels, using two datasets between 1995 and 2016 for Japanese trade only and world trade. For the static analysis, we investigated the overall impacts and the effect of individual FTAs. Regarding dynamic analysis, we considered the time since their enactment. Our results indicate that the impacts are heterogeneous among Japan’s FTAs and products, with a trade creation effect for some FTA part...

International trade and investment have always been an epicenter of research, and with the onset of the COVID‐19 pandemic, a surge in the publication of review articles focusing on different facets of trade and investment has been observed, but a comprehensive retrospective review of international trade and investment remains scarce. To address this gap, a systematic literature review of 30 articles published in A* and A ranked journals, along with performance analysis and science mapping of 720 articles retrieved from Scopus and Web of Science databases using bibliometric analysis is done. Co...

Understanding the globalized world economy is more important than ever before. This book provides a clear, concise, and up-to-date look at the economic foundations of international trade. The authors explain the principal concepts in an engaging and accessible manner open to students from any discipline, incorporating contemporary trade data through full-colour diagrams and graphs. Throughout, economic models are discussed in the context of recent and current international trade issues, to ensure students gain a concrete understanding and see how the field impacts the real world. Written for u...

This thesis explores the effects of trade costs on international trade at macro and micro levels. It focuses on traditional and non-traditional sources of trade costs that imped trade flows at various phases of a typical export shipment: behind the borders, at the borders and beyond the borders. It initially examines the connection between trade costs and the composition of developing countries’ exports and then explores the responses of firms to additional costs associated with the security of supply chain imposed on Pakistan’s firms in the wake of events of 9/11. Following this, it investig...

Background: Trade logistics service delivery is a key aspect in a country’s economic success in both national and international trade activities. It is critical in attaining competitive advantages for businesses actively involved in international trade. The improvement of services, infrastructure and logistics has helped to reduce delays and cost in cross-border goods transactions, resulting in a considerable growth in international trade.Objective: The study investigates the contribution of trade logistics service delivery to the growth of international trade. Overall improvement of logistics...

Values of net oil imports(‐)/exports for Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, Japan, Canada, the United States and Australia. Updated on a monthly basis.Number of imports for Belgium, France, Germany, Greece, Republic of Ireland, Italy, Netherlands, Portugal, Spain, Sweden, the United Kingdom, and Other EU‐15 (EU‐15), Norway, Poland, Switzerland, Turkey, and Other Europe (OECD Europe), Canada, Chile, Mexico, and the United States (OECD Western Hemisphere), and Australia, Japan, Republic of Kor...

ABSTRACT The expansion of FTA rules from the border to the “depth” within the border can promote the reduction of trade barriers between member countries. Yet, this can also increase the cost of compliance. Hence, this research examines the impact of FTA deepening on China’s import and export trade based on the trade data between China and 21FTA partner countries over the period of 2005–2018. This paper introduces the FTA deepening index, constructs a structural gravity model, and empirically applies PPML estimation and instrumental variable methods. The results show that FTA deepening promote...

ACM has decided to retract the Entire Conference Proceedings and all related papers from the ACM Digital Library and none of the papers from this Proceeding should be cited in the literature because of the questionable integrity of the peer review process for this Conference.

ABSTRACT In the literature, search engines are considered as effective tools for obtaining information. However, little attention has been paid to the effect of search engines on international trade even though information (barrier) is very important in international trade. To address this issue, we analyse how online search, proxied by Google Trends Interest by Region (GTIR), affects international trade in a classic gravity model. Our results show that online search intensity between the two countries can significantly promote international trade. This finding is robust to a wide range of tes...

This article examines the relationship between China and the United States, being the two largest economies in the world, for 6 years they have been at the center of a trade conflict, which could soon develop into a trade war.