Abstract We conduct an in‐depth analysis of the reasons for changes in global value chains as a result COVID‐19 both from positive angle, analysing expected behaviour firms, and normative assessing different arguments policy interventions by governments. The generates three main conclusions. First, pandemic could contribute to diversification sources supply whose extent will vary sector depending on costs chain reorganisation. pandemic, contrast, is not likely much re‐shoring, return...

The objective of this manuscript is to serve as a practical guide for estimations with the structural gravity model. After brief review theoretical foundations, we summarize main challenges and solutions address those challenges. Then, integrate latest developments in empirical literature offer six recommendations obtain reliable partial equilibrium estimates effects bilateral non-discriminatory trade policies within same comprehensive, theoretically-consistent econometric specification. Our...

We capitalize on the latest developments in empirical structural gravity literature to revisit question of whether and how much does GATT/WTO membership affect international trade. are first capture non-discriminatory nature commitments by measuring effects trade relative domestic sales. These unilateral found be large, positive, statistically significant. also obtain bilateral estimates, which larger than those reported literature. In particular, our results imply that, average, joining...

This paper explores the role that quality of infrastructure has on a country's trade performance, estimating gravity model incorporates bilateral tariffs and number indicators for infrastructure. The looks at impact (road, airport, port telecommunication, time required customs clearance) total in automotive, clothing textile sectors. In order to obtain unbiased estimators, multilateral resistances remoteness are introduced equation. Moreover, robustness results is tested by fixed-effect...

Empirical evidence on migration and trade has established that permanent promotes trade. This finding been interpreted as proof for the role of migrants in reducing trade‐related transaction costs such contract enforcement or information costs. paper contributes to improving our understanding by analysing empirically whether temporary migrants, like have an impact bilateral flows. Temporary can be expected less integrated host country than migrants. At same time, their knowledge home can,...

Using a gravity-type model to explain bilateral passenger traffic, this paper estimates the impact of liberalizing air transport services on flows for sample 184 countries. We find robust evidence positive and significant relationship between volumes traffic degree liberalization aviation market. An increase in from 25th percentile 75th increases countries linked by direct service approximately 30 per cent. In particular, removal restrictions determination prices capacity, cabotage rights...

Using information on 2,300 Air Services Agreements covering 184 countries, we investigate the impact of air services liberalization passenger flows. We find that a certain level is required to have positive effect traffic. In particular, estimate multilateralization multiple designation provisions, Open Skies and European Economic Area-type agreements would increase traffic worldwide by 0.5, 5, 10 percent, respectively. The potential endogeneity problem carefully dealt with using...

Abstract The different facets of trade facilitation may impact heterogeneously exporters size and productivity. Using the cross‐sectional variation in procedures at border, we identify how red tape affects through extensive and/or intensive margin show that small large are affected differently. We observe while information availability benefits both exporters, other measures like advance ruling, appeal automation border formalities tend to favor exporters. This result suggests policies...

Abstract The existing empirical literature on impact of GATT/WTO membership international trade is mixed. This paper contributes to solving the puzzle “the missing effects” by adhering closely theoretical foundations gravity model trade. Capitalizing latest developments in and building a new large data set covering 186 countries over period 1980–2016, we estimate theory‐consistent equation, which includes intra‐national addition flows. We find that joining increased partial equilibrium...

ABSTRACT Digital connectivity enhances international trade by reducing costs, including search frictions, language barriers, and other transaction costs. It is particularly transformative for services trade, where digital delivery enables cross‐border in numerous sectors. Using comprehensive estimates of costs across 58 economies 23 sectors, our analysis reveals that a 10 percentage point increase reduces an average 2% both goods Notably, the positive effects are significantly larger with...

Do WTO commitments reduce the risk of trade policy reversals? To address this question, we rely on theoretical model varying cooperative tariffs by Bagwell and Staiger (1990) to specify our empirical for probability a tariff increase. We then study how affect probability. estimate using database bound that built all Members from 1996 2011 at HS 6-digit level disaggregation. Our results show significantly increase, even when is above MFN applied rate. In addition, reduces uncertainty through...

We address the trade effect of restrictive product standards on margins trade, by matching a detailed panel French firm exports with new database compiling list Sanitary and Phyto-Sanitary regulatory measures that have been raised as concern in dedicated committees WTO. By using specific concerns to capture degree restrictiveness we focus only are perceived barrier trade. analyse their effects three related aspects: (i) probability export exit market (firm-product extensive margins), (ii)...

Abstract The existing literature shows that transparency and monitoring reduce trade costs, improve regulatory practices build sustain trust. In this paper, using 555 specific concerns (STCs) raised by the Technical Barriers to Trade (TBT) committee in period 1995–2018, we develop a novel classification of STCs. We distinguish between STCs aiming exchange information (transparency STCs) those monitor compliance with TBT agreement (monitoring STCs). show that: (i) when intend foster...

This paper analyzes the risks of preference erosion arising from MFN trade liberalization in manufactured products. It focuses on developing countries that receive non-reciprocal preferences markets United States, EU, Japan, Canada and Australia. The estimates margins as difference between preferential rates received by individual best available (MFN or better-than-MFN) treatment average all other suppliers. Most previous work this subject has compared for with alone, which found to have...